Prabhat Diary sale of milk biz: Stock sheds over 14% after initial surge

Shares plummet almost 30% from intra-day high on concerns that minority shareholders may not gain much from the deal with Groupe Lactalis

Shares of Prabhat Diary slumped over 14 per cent on Tuesday after the company announced sale of its flagship milk business to French firm Groupe Lactalis.

Late on Monday, Prabhat notified to the stock exchanges that Lactalis’ Indian subsidiary Tirumala Milk Products was acquiring its dairy business for Rs 1,700 crore.

In early trade, shares of Prabhat soared 20 per cent to Rs 111. However, there was heavy selling pressure during the later part of the day, and the stock ended nearly 30 per cent lower, at Rs 79.5, from the day’s high.

On Monday, Prabhat’s market capitalisation stood at