InvestorQ : Why Prabhat Dairy price went low?
swati Bakhda made post

Why Prabhat Dairy price went low?

Neelam Naik answered.
2 years ago

Price of Prabhat dairy came down as a result of the company announcing to sell its dairy business to French dairy multinational Group Lactalis for Rs. 1,700crore. This transaction will be a slump sale to Tirumala Milk Products Private Limited, which is a wholly owned subsidiary of Lactalis in a going concern basis.

As the announcement was done before the trade started, the stock opened at 20% higher on 22 Jan 2019 however, later the price plunged down to a 52-week low. Shareholders might have felt uncertain on the reward they might get form company which can be a reason for the price to fall.

Prabhat dairy is an integrated Milk & Dairy product Company and has been in the business since 1998. It has planned to move into cattle feed and animal genetics business after selling the dairy business.