Shares of Prabhat Dairy rallied 19.95 percent to hit upper circuit of Rs 78.45 apiece on NSE on Friday morning. On Thursday, post-market hours, the company said that its board of directors will consider delisting shares from the stock exchanges on 10 September.
Promoters of the company intend to purchase 49.9 percent of the stake from public shareholders and then go for voluntary delisting. They currently hold 50.1 percent in the company.
The stock exchange filing said that the company has received a letter from the promoters, wherein, "they have expressed their intention to acquire 4,87,40,547 fully paid-up equity shares of the Company representing 49.90% of the paid-up equity share capital of the Company that are presently held by the public shareholders of the Company and consequently voluntarily delist the equity shares of the Company from the stock exchanges where they are listed, namely BSE Limited and National Stock Exchange of India Limited ("Stock Exchanges") in accordance with the Delisting Regulations and withdrawal of "permitted to trade" status of the equity shares of the Company from Metropolitan Stock Exchange of India Limited ("MSE") ("Delisting Proposal")".
"Presently, 4,89,35,584 fully paid-up equity shares of the Company representing 50.10% of the paidrup equity share capital of the Company are held by shareholders forming part of its promoter and promoter group category out of which Nirmal Family Trust, Mr Sarangdhar Ramchandra Nirmal and Mr. Vivek Sarangdhar Nirmal hold 46.64 %, 1.15% and 1.15% of the paid-up equity share capital in the Company, respectively," it further said.
The stock was trading at 1,685 times its 20-day average volume on Friday, according to a Bloomberg report.