Zydus Wellness Repositions with over 5% Gain in Share price After Strategic Stake Exit

18 June 2025
2 min read
Zydus Wellness Repositions with over 5% Gain in Share price After Strategic Stake Exit
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Zydus Wellness shares rallied sharply after private equity firm True North fully exited its holding through a large block deal. True North, via its subsidiary Threpsi Care LLP, offloaded 46.27 lakh shares to a 7.27% stake at ₹1,900 apiece, generating proceeds of approximately ₹879 crore. The stake was acquired by PPFAS Mutual Fund, as per NSE data. 

Following the transaction, Zydus Wellness stock surged intraday to a high of ₹2,137.30 before settling 3.7% higher at ₹1,984, reflecting strong investor appetite and renewed confidence in the company's fundamentals. As of 11.40, Zydus Wellness shares are trading at  ₹2,045.50, gaining over 5%.

Q4 Performance and Corporate Actions

In Q4 FY25, Zydus Wellness has posted a consolidated net profit of ₹171.9 crore, an increase of 14.4% from the previous year . Revenue rose to ₹910.6 crore, from ₹778 crore in Q4 FY24 . Apart from this, the board also played a 1:5 stock split subject to shareholder approval to increase liquidity and make the shares more accessible to retail investors .

Implications for Share Structure and Liquidity

True North’s exit reduces private equity holdings and increases the free float, potentially enhancing liquidity for both retail and institutional investors.

The switch can realign Zydus Wellness in benchmark indices or mutual fund portfolios. This move follows True North’s earlier stake sales of about 2.6% in August last year for approximately ₹374 crore and 1.23% in December the year before for around ₹127 crore.

The promoter Zydus Lifesciences maintains complete control to ensure continuity of operational and strategic guidance. Consequently, the exit reflects faith in Zydus Wellness' long-term potential with no substantive change in management or vision.

Zydus Wellness Repositions After Strategic Stake Exit

The block transaction and Q4 results reaffirm Zydus Wellness' position in the mid-cap FMCG segment. The tripling of profit and revenue growth alongside the stock split paves the way for better market access and deeper liquidity.

In the near term, Zydus Wellness’s stock may remain volatile as the market digests the impact of the recent block deal and institutional flows adjust. However, the company’s longer-term fundamentals remain robust, supported by rising demand in the health and wellness space, the growing brand strength of key products like Complan and Sugar Free, and favourable consumption patterns in urban India.

The market will closely monitor the upcoming stock split and the resulting increase in free float, with its success likely influencing future investor sentiment. Meanwhile, the company’s first-quarter results for FY26 and its continued alignment with health-focused consumer trends are expected to be key momentum drivers.

The True North block deal is a turning point for Zydus Wellness, boosting liquidity and institutional attention. With firm Q4 performance and efforts to democratise the shareholding arrangement, the company looks to post steady mid-cap growth, assuming wider market conditions stay healthy.

 

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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