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Prabhat Dairy hits 52-week low as firm to sell milk business to Lactalis

The stock hit a 52-week low of Rs 78.15, down 16 per cent, falling 30 per cent from its intra-day high of Rs 111 on the National Stock Exchange (NSE).

SI Reporter  |  Mumbai 

Prabhat Dairy
(Photo courtesy: Prabhat Dairy)

Shares of hit a 52-week low of Rs 78.15, declining 16 per cent from its previous close, and crashing 30 per cent from its intra-day high on the National Stock Exchange (NSE) after the company announced that global dairy major will buy its The stock had rallied 20 per cent to Rs 111 on the in early morning trade.

“The company has entered into definitive agreements with Tirumala Milk Products Private Limited, a wholly owned subsidiary of French dairy multinational Groupe Lactalis, for the sale of its for a consideration of Rs 1,700 crore,” said in a statement on Monday after market hours.

The transaction involves the sale of the undertaking of by way of slump sale on a going concern basis, along with the sale of 100 per cent shareholding in Sunfresh Agro Industries Private Limited (a step-down subsidiary of Prabhat Dairy) via a share purchase agreement, it added. The transaction is subject to mandatory approvals.

Prabhat Dairy said that it intends to share a substantial portion of the proceeds from the sale with shareholders after meeting its tax and transaction cost obligations.

After closing of the transaction Prabhat Dairy intends to further develop its cattle feed business in various parts of the country, as well as expand into allied businesses such as animal nutrition and animal genetics. CLICK HERE TO READ PRESS RELEASE

Prabhat Dairy made a stock market debut on September 21, 2015. It hit an all-time high of Rs 241 on January 24, 2018 in intra-day deal. The stock was trading 32 per cent below its issue price of Rs 115 per share.

At 03:09 pm, Prabhat Dairy was down 14 per cent at Rs 79.55 on In comparison, the 50 was down 0.36 per cent at 10,922 points. The trading volumes on the counter jumped multiple-fold with a combined 24.82 million equity shares, representing 25 per cent of the total equity of Prabhat Dairy changed hands on the and so far.

The stock trading close to its all-time low price of Rs 71 touched on February 26, 2016, on the NSE in intra-day trade.

First Published: Tue, January 22 2019. 09:51 IST