TTK Healthcare Ltd, part of Chennai-based diversified business conglomerate TTK Group has expressed its intention to delist the company from the bourses in a bid to provide enhanced operational, financial and strategic flexibility in the running of the company. Its promoters have proposed to acquire all the equity shares held by public shareholders and file for voluntary delisting of its shares from the stock exchanges.
The company believes that a slew of its consumer product lines are with single digit margin while different businesses require separate attention and significant cash outflow. Post the move, as the company will no longer remain listed in India, there will be reduction in dedicated management time and cost related to listing to comply with the applicable securities laws, the promoters feel.
Promoters of TTK Ltd TT Jagannathan, TT Raghunathan and T T Krishnamachari & Co- represented by its partners – TT Jagannathan, TT Raghunathan, Latha Jagannathan, Bhanu Raghunathan, TT Mukund, TT Lakshman, TT Venkatesh and TT Sriram will be acquiring the shares held by the public and consequently voluntarily delist the equity shares from the stock exchanges, the company
The promoters are of the view that post exit of the human-pharma business by the company, it is left with a host of consumer product lines with single digit margin. In a highly competitive environment, the B to B and white-label businesses require separate attention and significant cash outflow.
The promoters also perceive that any long term business plan would involve rationalisation of certain portfolios, expanding operations into new product categories and new business activities, which may have different risk profiles, funding requirements, longer gestation periods compared to the current risk profile of the company and it would be more prudent to preserve the cash.
They believe that instead of subjecting the public shareholders to uncertainties it would be fair to provide them an exit opportunity through a delisting offer. “Thus the proposed delisting is in the interest of the public shareholders as it will provide them an opportunity to exit from the company at a price determined in compliance with the delisting regulations. The proposed delisting would enable the members of the promoter group to obtain full ownership of the company, which in turn will provide enhanced operational, financial and strategic flexibility,” company said in a regulatory filing.
As on date, TT Jagannathan holds 7,59,298 equity shares representing 5.37% of the paid up equity share capital of the company, TT Raghunathan holds 38,797 equity share representing 0.27% and T T Krishnamachari & Co holds 95,32,610 equity shares representing 67.46%. The aggregate shareholding of the promoter group (including the acquirers) is to the tune of 1,05,35,840 equity shares aggregating to .56% of the paid up equity share capital of the company.
The discovered price will be determined through the reverse book building process, after fixation of the floor price. The acquirers will separately inform the floor price in due course.
TTK Healthcare has a diverse product portfolio in sectors like medical devices and food products, as well as consumer products – with renowned brands like Skore, Woodwards Gripe Water, Eva and Good Home. TTK has been one of the key players in the Indian condom industry since 1950 by importing & distributing condoms packs and later in 1963 establishing the first condom manufacturing factory in the country. TTK Healthcare shares closed at Rs 1303 on NSE on Thursday.