Prabhat Dairy opened the day for trading today at Rs.111.65, touching the 20% UC. Since then it has come off that high and is now at Rs.99.50, up some 6%.
The market is happy with the news that it is selling off its dairy business and its wholly owned subsidiary, Sunfresh AgroInds to Tirumala Milk Products Private Limited, which is a wholly owned subsidiary of French dairy multinational Groupe Lactalis.
Lactalis is buying both for Rs.1700 crore and the money is to be used to pare debt and fund its diversification into an animal feed and genetics company.
Its debt as at 30th Sept’18 stood at Rs.320 crore.
The deal is expected to be completed by June’19.