Private equity firm Advent International, which holds a majority stake in DFM Foods via its subsidiary AI Global Investments, on August 15 announced the proposal to delist the snack maker from the stock exchanges.
In a regulatory filing, Advent expressed AI Global's intention to "acquire all the equity shares that are held by public shareholders, either individually or collectively, as the case may be."
Consequently, the Crax-maker will "voluntarily delist the equity shares" from the BSE and the NSE -- the two stock exchanges where they are presently listed, the filing stated.
"We are pleased to inform you that JM Financial Limited has been appointed as the manager to the delisting proposal," it further said.
The delisting proposal was announced around four months after Moneycontrol had exclusively reported, citing sources, that Advent-owned DFM Foods may look to delist from the exchanges. The persons privy to the development who were cited in that article, had claimed that the delisting proposal was being mooted to allow Advent to take "bold and strategic decisions" for an overhaul of the company.
DFM Foods' stock has been languishing close to the price at which Advent had acquired a majority stake it in 2019. The PE firm had acquired the shares at Rs 249.50 apiece and owned a total of 73.70 percent stake, via its affiliate AI Global, as of June 30, 2022.
Ahead of the delisting proposal being announced, the shares of DFM Foods recorded a 20 percent jump at the BSE and NSE on August 12, closing at around Rs 253 apiece.
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