Prabhat Dairy plunges 10% after board nod to voluntary delisting of shares

Prabhat Dairy fell 10 percent intraday on September 16 after the board approved a voluntary delisting of the company’s shares.

The stock has gained more than 30 percent in the last 15 days after a letter from promoters called for delisting. But, the stock has lost more than 50 percent of its value in the last one year. It was quoting at Rs 75.65, down Rs 3.65, or 4.60 percent, on the BSE at 1227 hours.

Early in September, promoters Sarangdhar Ramchandra Nirmal, Vivek Madhyam Farming Solutions and Nirmal Family Trust wrote to the company expressing their intention to acquire 4,87,40,547 fully paid up equity shares of the company (representing 49.90 percent of total paid-up equity) held by public shareholders and consequently, delist the equity shares from BSE and the National Stock Exchange.

The board members, on September 13, approved the delisting proposal and recommended that the company seek shareholders’ approval by way of a special resolution through postal ballot and e-voting.

Company fixed a floor price for delisting of shares at Rs 63.77 per share, which was 19.6 percent discount to closing price on September 13 and one of the reasons for the fall in the share price.

Promoters hold 50.10 percent stake in the company, of which 59.88 percent is pledged with lenders.

After debut in September 2015, the stock jumped 124 percent to hit a record high of Rs 257.90 in December 2017 from its issue price of Rs 115, but since then, it is in a downtrend and has lost half of its value.

Source : http://tiny.cc/pyhtcz

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