DFM Foods zooms 20% as firm looks to delist from bourses

New Delhi: Shares of DFM Foods hit the upper circuit of 20 per cent at open on Tuesday on the back of buzz for the desilting of the equity shares of the company.

The packaged food maker made an initial public announcement for the delisting of the equity shares from the bourses in a regulatory filing submitted on Monday.

AI Global Investments (Cyprus) and AI Darwin (PAC), as persons acting in concert with the Acquirer, express the acquirer’s intention to acquire all the equity shares that are held by public shareholders, either individually or collectively, the filing said.

This consequently voluntarily delists the equity shares from the stock exchange where equity shares are listed, which are BSE and National Stock Exchange, by making a delisting offer in accordance with the Delisting Regulations, it added.

JM Financial has been appointed as the manager of the delisting proposal, the regulatory filing added. The manager will determine the delisting price in future and the promoter group needs to acquire at least a 90 per cent stake in the company.

Explaining the rationale for delisting of equity shares, the filing added that the acquirer would obtain full control of the company and shareholders will realise immediate certain value for the shares.

The sole promoter of DFM Food currently holds 3,70,54,137 equity shares aggregating to 73.70 per cent of the paid-up share capital of the company, whereas PAC does not hold any stake.

DFM Foods is in the business of manufacturing, selling and marketing packaged snack foods under the brand name of 'Crax' and has been a leader in the space for over 25 years. It has sales across North, West and Central India.