Docon Sells 9.9% Stake in Thyrocare for Rs 986 Crore

Docon Technologies, a significant promoter of Thyrocare Technologies Ltd, has offloaded a 9.9% stake in the diagnostics company, generating Rs 986 crore. The transaction was executed through a series of bulk and block deals across the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on Thursday.

Details of the Transaction

The divestment involved the sale of 1,57,69,696 equity shares. On the NSE, more than 1.31 crore shares were sold via block deals, while an additional 10 lakh shares were transacted through bulk deals. Over 16.01 lakh shares changed hands through a bulk deal on the BSE. The shares were priced between Rs 624 and Rs 631.71 each, culminating in a total transaction value of Rs 985.86 crore.

Impact on Docon's Holding

Following this sale, Docon's ownership in Thyrocare Technologies has decreased from 60.92% to 51.02%. The stake sale attracted interest from a diverse group of institutional investors, insurance companies, and global entities. Notable participants included HSBC Mutual Fund, DSP Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, WhiteOak Capital Mutual Fund, and ITI Mutual Fund. Insurance giants Kotak Mahindra Life Insurance Company and Tata AIA Life Insurance also took part, along with international investors such as Morgan Stanley, Citigroup Global Markets, HBM Healthcare Investments (Cayman), and the Kuwait Investment Authority.

Market Reaction and Historical Context

In response to the transaction, Thyrocare Technologies' shares saw an uptick, gaining nearly 3% to close at Rs 621.95 on the NSE and over 2% to Rs 622 on the BSE on Friday. This sale follows a previous divestment by Docon in October of the previous year, when it sold a 10% stake in Thyrocare for Rs 667 crore.

While details of other buyers in the bulk deals remain undisclosed, the substantial participation from prominent financial institutions underscores the ongoing interest in India's diagnostic sector.