TTK Healthcare rallies on merger of contraceptives biz

The board approved the scheme of amalgamation of TTK Protective Devices and TSL Techno Services, a wholly owned subsidiary of TTKPD with itself.

TTK Healthcare has rallied 11% to Rs 538 after the board of directors of pharmaceutical company has approved the scheme of amalgamation of TTK Protective Devices (TTKPD) (formerly known as TTK-LlG), an unlisted public company; and TSL Techno Services (TSL), a wholly owned subsidiary of TTKPD with itself. TTKPD is engaged in the business of contraceptives.

“On amalgamation of the companies, the shareholders of TTKPD will be entitled to nine equity shares of  Rs 10 each fully paid-up of TTK Healthcare, for every two shares of Rs 10 each fully paid-up held by them in TTKPD,” TTK Healthcare said in a filing.

Further, no allotment shall be made to the shareholders of TSL Techno, it being the wholly owned subsidiary of TTKPD, the value of TSL having already been considered as part of the valuation of TTKPD, it added.

The stock opened at Rs 489 and touched high of Rs 543 on NSE. A combined around 168,000 shares already changed hands on the counter till 1000 hours against an average sub 200,000 shares that were traded daily in past two weeks on NSE and BSE.