Stocks

Prabhat Dairy board to meet on Tuesday to consider delisting

Our Bureau? Chennai | Updated on September 09, 2019 Published on September 06, 2019

Shares zoom 20% following the news

The stock of Prabhat Dairy jumped 20 per cent on Friday after the company said its board will meet on Tuesday to consider delisting of shares. The stock closed at ₹78.15 on the BSE.

In a notice to stock exchanges on Thursday (after market hours), Prabhat Dairy said that its board will discuss the delisting process, the appointment of a merchant banker and trading and off-market transaction details for a period of two years.

Plans to buy 49.9% stake

Prabhat Dairy’s promoters intend to acquire about 4.8 crore shares, or 49.9 per cent, stake in the company, from the shareholders and then go for voluntary delisting. Currently, promoters control 50.1 per cent stake in Prabhat Dairy.

Meanwhile, in a separate notification to the stock exchanges, the company said its board has accepted the resignation of Raviraj Vahadane, CFO of the company, with effect from August 26.

In January, Prabhat Dairy had sold its milk processing business to French major Lactalis for ₹1,700 crore. The French group acquired the division through its wholly-owned Indian subsidiary, Tirumala Milk Products, by way of a slump-sale. Prabhat Dairy also sold its entire stake in Sunfresh Agro Industries, a step-down subsidiary, through a share purchase agreement.

Following the completion of the deal, Prabhat Dairy focussed on to further develop its cattle feed business and expand into allied businesses such as animal nutrition and animal genetics.

Published on September 06, 2019
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