Avanti Feeds extends fall ahead of board meeting

The stock dipped 5% to Rs 436, extending its 6% decline in past four trading sessions on the BSE.

Avanti Feeds has dipped 5% to Rs 436, extending its 6% decline in past four trading sessions on the BSE, ahead of its board meeting on Friday to consider the transfer of shrimp processing business into a wholly owned subsidiary on slump sale basis.

The board of directors of the company will meet on December 18, 2015, to consider the approval of Business Transfer Agreement (BTA), in connection with transfer of shrimp processing business to Avanti Frozen Foods Private Limited (a wholly owned subsidiary of Avanti Feeds Limited), to be effective from November 01, 2015, at a slump sale value of Rs 128 crore, Avanti Feeds said in a regulatory filing on December 8.

To board will also consider subscription of six million equity shares of Rs 10 each a premium of Rs 131 per equity share, aggregating to Rs 84.60 crore in connection with the rights issue made by Avanti Frozen Foods Private Limited, it added.

The shrimp processing business accounted 15% of the company’s total revenues.

At 12:27 PM, the stock was down 4.4% at Rs 440 on the BSE. A combined 36,363 shares changed hands on the counter on the BSE and NSE so far.