Prabhat Dairy gallops as board approves sale of Sunfresh Agro

Prabhat Dairy jumped 13.81% to Rs 105.90 at 10:05 IST on BSE after the company approved sale of its stake in Sunfresh Agro Industries to Tirumala Milk Products for Rs 1227.18 crore.

The announcement was made after market hours yesterday, 21 January 2019.

Meanwhile, the S&P BSE Sensex was down 168.71 points or 0.46% at 36,410.25

On the BSE, 4.21 lakh shares were traded on the counter so far as against the average daily volumes of 5,878 shares in the past two weeks. The stock had hit a high of Rs 111.65 and a low of Rs 105 so far during the day.

The board of directors of Prabhat Dairy approved the sale of the company's shareholding in its wholly owned step down subsidiary, Sunfresh Agro Industries (SAIPL) to Tirumala Milk Products for a total consideration of Rs 1227.18 crore.

Further, the board of directors of the company also approved the sale and transfer of company's dairy products business, together with all specified tangible and intangible assets contracts, rights, personnel and employees, data and records, inventory and other assets and liabilities as agreed between the parties by way of slump sale on a going concern basis, to SAIPL, post completion of transfer of SAIPL shares to Tirumala Milk Products, upon terms and conditions contained in the busines transfer agreement being entered amongst the company, SAIPL and Tirumala Milk Products, for a total consideration of Rs 472.81 crore.

Prabhat Dairy's consolidated net profit rose 35.86% to Rs 12.35 crore on 8.73% growth in total income to Rs 419.56 crore in Q2 September 2018 over Q2 September 2017.

Prabhat Dairy is an integrated milk and dairy products company. The company is engaged in the business of procurement and processing of milk and sale of milk and milk products, such as ghee, flavored milk, skimmed milk powder, whole milk powder and condensed milk.

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