Prabhat Dairy Ltd shares shot up 20% to hit the upper circuit on Friday, i.e. 6 September, after the company said its board will meet on 10 September to consider delisting of shares.
At 10.47 am, the Prabhat Dairy stock was trading up 20% at Rs 78.45. The share price has corrected nearly 59% in the last one year but, notably, has shot up 30% this week.
In a stock exchange filing on Thursday, Prabhat Dairy said that, on 10 September, the company’s board of directors will discuss the delisting process, the appointment of a merchant banker and trading and off-market transaction details for a period of two years.
Prabhat Dairy’s promoters intend to acquire about 48 million equity shares, or 49.9% stake in the company, from the shareholders and then go for voluntary delisting. Currently, they hold a 50.1% stake in Prabhat Dairy, according to the stock exchange notification.
The statement added that the trading window will be closed immediately and shall re-open after 48 hours wherein the announcement of the delisting proposal will be carried.
In January, Prabhat Dairy had sold its dairy business to French major Lactalis for Rs 1,700 crore. After the deal, the company focused on its cattle feed business and expanded its allied businesses such as animal nutrition and animal genetics.
The company is an integrated milk and dairy products company in India catering to institutional as well as retail customers.
It produces fresh, dry, frozen, cultured and fermented dairy products. Besides selling its products under its retail consumer brands, the company also sells ingredient products or co-manufactured products to a number of institutional and multinational companies.
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Source: News18