The transaction involves the sale of the dairy business undertaking of Prabhat Dairy 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.
The stock, eventually, ended the day at Rs 79.75, down over 14 per cent on BSE. In comparison, the S&P BSE Sensex ended 134 points or 0.37 per cent lower at 36,445.