Shares of Prabhat Dairy were locked in the upper circuit band of 20 per cent at Rs 78.15 apiece on the BSE on Friday, after the company said the promoters, including Sarangdhar Ramchandra Nirmal, and Vivek Sarangdhar Nirmal, were mulling purchasing publicly held shares, and delisting of the company. In comparison, the benchmark S&P BSE Sensex was ruling 0.32 per cent higher at 36,761 level.
“The company has received letter from Sarangdhar Ramchandra Nirmal, Vivek Sarangdhar Nirmal, Madhyam Farming Solutions Private Limited and Nirmal Family Trust, the members of the promoter and promoter group, where they have expressed their intention to acquire 4,87,40,547 fully paid-up equity shares of the company representing 49.90 per cent of the paid-up equity share capital that are presently held by the public shareholders,” it said in a regulatory filing. Click to read the firm's statement
Consequently, the board of the company would consider voluntary delisting of the shares of the company on September, 10.
The promoter groups held 4,89,35,584 paid-up equity shares, making 50.1 per cent, of the company, at the end of June, 2019. Of this, Nirmal Family Trust, Sarangdhar Ramchandra Nirmal, and Vivek Sarangdhar Nirmal held 46.64 per cent, 1.15 per cent, and 1.15 per cent, respectively, the company’s data on shareholding pattern show.
So far in CY2019, the stock of the company has underperformed the frontline index by plummeting 28 per cent YTD, as against a 1.6 per cent rise in the S&P BSE Sensex. A total of 4.83 lakh shares changed hands on the BSE and NSE till the time of writing this report.