Recently, news relating to Thyrocare is circulating in the market. What is the news and why did the stock fell on Monday? Let’s find out.
The start-up named PharmEasy has acquired a controlling stake of 66.1% in Thyrocare Technologies. PharmEasy has paid around Rs. 4,546 Crore at the price of Rs. 1,300 per share. The stock fell around 9% after the news on Monday. A start-up rarely buys a well-established company. This is the first-ever acquisition of a listed company by an Indian Unicorn.
Let’s read out some highlights about this deal.
Highlights of the deal of stock:
- The stock was trading at around Rs. 1,450 before the news circulated in the market. And the deal at the price of Rs. 1,300 will draw down the price in the market in the short term.
- The company will also proceed with an open offer for 26% of the shares to the minority shareholders. Overall, this will take the deal value to the level of more than Rs. 6,300 Cr.
- In fresh funding from Institutional Investors, several big players participated in the deal like Temasek, TPG Growth, B Capital Think Investments, Kotak’s Private Equity Fund, and Orios- a series A investor in the company.
- PharmEasy is a start-up and believes in exponential growth prospects. If they are buying a stake in Thyrocare, the company must have seen potential in the stock.
- Thyrocare has been a low-cost and high-volume player, with the high client base of PharmEasy it can achieve very high growth.
- Mr. A Velumani, the promoter of Thyrocare who is selling its stake will be buying around 5% in API Holdings Limited, the parent company of PharmEasy as well and he is very confident with his decision.
- It means that he will remain as an interested partner and will be part of the operations team of Thyrocare.
Current Status of the Thyrocare Technologies & PharmEasy:
- Currently, Thyrocare Technologies has a chain of 3,300 diagnostic centers across 2,000 towns and cities in the country.
- While the start-up company PharmEasy has a network of 80,000+ pharmacies and more than 6,000 doctors on their board.
The long-term investor should look at the longer horizon and earnings visibility of the company with is supported by the growth in earnings. The industry upholds a great potential to grow in the coming years. The company can perform very well in the long run.