MUMBAI: While a newbie like PharmEasy’s acquisition of a veteran diagnostics company like Thyrocare Technologies had India Inc talked about, investors in the diagnostics company were not satisfied.

The merits of the deal are undeniable, with brokerage firm Edelweiss Securities saying the acquisition could catapult Thyrocare “into a different league.” Still, for investors, the deal turned out not to be as good as it looks.

API Holdings, owner of PharmEasy, will make an open offer to acquire an additional 26 percent stake in the company after buying out the 66.14 percent stake from promoter A Velumani. The open offer price was set at Rs. 1,300 per share, a significant 10% discount from Friday’s closing price. The stock fell at the opening Monday and finished a little lower 10 percent for the day.

The discounted open offer price is likely to discourage Thyrocare’s public shareholders, as API Holdings has a sufficient stake in the company to manage it. Any additional stake is not an urgent problem for the newcomer to online pharmacy.

passes costs on to consumers

Shares of the tractor maker rose nearly 2 percent as it joined hordes of other companies in the field to raise prices for its products. Pressed by soaring input prices on the one hand and the need to stimulate demand on the other, the company probably decided that it could not afford to absorb the higher input costs. Transferring soaring commodity costs to consumers will help protect the company’s short-term margins, and that’s all investors are concerned about in an inflationary environment.

Is Oil The New Metal?

The good days for oil companies continue as stocks rose again on Monday in the wake of rising global crude oil prices. Shares of Oil & Natural Gas Corporation rose more than 1 percent, while those of soared more than 3 percent. The two shares are up 9 percent and 22 percent, respectively, in June so far. With several global brokerages predicting that the price of oil will return to $ 80 a barrel as global demand explodes, these scrips could be the new metal stocks in this bull market.



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