Prabhat Dairy share price was locked in upper circuit of 20% on BSE and NSE today after the firm said it would hold a board meeting on September 10 to consider voluntary delisting of its equity shares.
Prabhat Dairy share price which opened 20% higher at Rs 78.15 compared to previous close of Rs 65.15. It hit an intra day low of Rs 78 on BSE.
The stock has traded in a narrow range of Rs 0.15 and there were only buyers bidding and no sellers offering the stock. Volume-wise, as of 1220 IST, there were 0.2 lakh shares and 4.6 lakh shares trading on BSE and NSE, both above the 5, 10 and 30-day average volume traded.
Prabhat Dairy share, that was already trading higher than 5, 20, 50, 100-day moving averages, has moved above its 200-day simple moving average in today's trade. The stock has gained 35.44% in the last 3 trading sessions.
The company said promoters including Sarangdhar Ramchandra Nirmal, and Vivek Sarangdhar Nirmal were considering purchase of publicly held shares, and delisting of the company.
"In the letter, the promoters 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", the company said.
The promoter groups presently hold 4,89,35,584 fully paid-up equity shares of the Prabhat Dairy representing 50.10% of the paid-up equity share capital. Of this, Nirmal Family Trust, Sarangdhar Ramchandra Nirmal and Vivek Sarangdhar Nirmal held 46.64%, 1.15%, and 1.15%, respectively.
The filing further added," Meeting of the board of directors of the company is being convened on Tuesday, September 10, 2019, to consider the delisting proposal".
By Rupa Burman Roy