Prabhat Dairy, an erstwhile supplier of condensed milk to Cadbury for making chocolates, is considering buyback of shares and has intimidated BSE and NSE regarding its plan for voluntary delisting.
Prabhat Dairy, an erstwhile supplier of condensed milk to Cadbury for making chocolates, is considering buyback of shares and has intimidated BSE and NSE regarding its plan for voluntary delisting. The company is 49.9% owned by the public. As part of the delisting process, the promoters and promoter group will acquire about 4.8 crore fully paid up equity shares of the company, Prabhat Dairy announced in a BSE filing. After that, the company will voluntarily delist the equity shares of the from both the stock exchanges — BSE Limited and National Stock Exchange of India Limited. The company will hold a meeting on 10 September 2019 to consider matters such as the proposal of delisting, appointment of a merchant banker registered with the Securities and Exchange Board of India, among others.
Currently, about 4.89 crore fully paid-up equity shares of Prabhat Dairy, which amounts to 50.10% of the paid up equity share capital of the company, are held by promoter and promoter group. Out of this 50.10%, Nirmal Family Trust owns 46.64% and Sarangdhar Ramchandra Nirmal and Vivek Sarangdhar Nirmal own 1.15% and 1.15% share capital respectively. Madhyam Farming Solutions Private Limited does not hold any equity shares as of date, the statement added. The company has frozen the trading window for 48 hours from when the announcement was made.
Meanwhile, the shares of the company were locked in the 20% upper circuit at Rs 78.15 per share on the BSE on Friday, after the company announced delisting.
Prabhat Dairy had sold its dairy business to French dairy major Lactalis for Rs 1,700 crore, earlier in January this year. After that, the company focused on its cattle feed business whilst expanding allied businesses such as animal nutrition. The company, founded in 1998, was listed in 2015 and has been a supplier of condensed milk for Mondelez International’s Cadbury brand of chocolates.
Prominent names in the Indian dairy market include Amul Cooperation, Mother Dairy, Parag Milk Foods, Hatson and some regional players such as Karnataka Cooperative Milk Producer’s Federation Ltd (Nandini Dairy). Recently, Future group also brought Future Fonterra dairy in partnership with New Zealand’s Fonterra.