India's Thyrocare eyes worst day in over 1 yr as investors weigh PharmEasy deal

Thyrocare Technologies

28/06/2021 07:56

** Medical laboratory chain's shares  THYO.NS  fall as much
as 8.8% to 1,321.10 rupees - set for biggest one-day percentage
fall since March, last year
    ** Thyrocare Technologies had hit a record high on Friday as
media reports said Temasek-backed online pharmacy, PharmEasy's
parent was set to buy a 66.1% stake in co 
    ** PharmEasy's parent co, API Holdings along with its unit,
Docon Technologies will buy a majority stake in THYO at 1,300
rupees/share, a 10.2% discount to its Friday close  urn:newsml:reuters.com:*:nFWN2O70ND
    ** The company did not specify whether it will continue to
stay publicly listed and if there would be any management
changes
    ** The stock price reflects more than full value of the deal
and hence, it is beneficial for shareholders to monetize the
opportunity at current market price, analysts at Prabhudas
Lilladher said in a research note
    ** However, ICICI Securities raised its rating to "hold"
from "reduce" - Thyrocare would benefit from additional volumes
through PharmEasy customers, business-to-consumer dealings would
improve meaningfully through the deal
    ** Including session's losses, Thyrocare stock is still up
~45% YTD 
    

 (Reporting by Shivani Singh in Bengaluru)
 ((ShivaniSingh1@thomsonreuters.com; +91 89 6969 2349))