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Home / Markets / Stock Markets /  Crax-maker DFM Foods hits 20% upper circuit on proposal to delist shares from exchanges
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Shares of Crax-maker DFM Foods surged to hit the 20% upper circuit level to 304 apiece on the BSE in Tuesday's opening deals after the company announced the proposal to delist the equity shares of the company from the stock exchanges BSE and NSE.

In an exchange filing on Monday, 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, and consequently voluntarily delist the equity shares from the stock exchanges. JM Financial Limited has been appointed as the manager to the delisting proposal.

Explaining the rationale for the delisting proposal, the company said that the proposed delisting would enable the acquirer (AI Global Investments) along with members of the promoter and promoter group of DFM Foods to obtain full ownership of the company which will in turn provide increased operational flexibility to support the DFM Food’s business and make investments in it.

The delisting proposal will provide the public shareholders an opportunity to realise immediate and certain value for their equity share and also the delisting of equity shares will result in reduction of the on-going substantial compliance costs, it said.

“The discovered price will be determined through the reverse book building process specified in Schedule II of the Delisting Regulations, after fixation of the ‘floor price’," the company added.

DFM Foods further stated that the delisting of equity shares will result in reduction of the on-going substantial compliance costs which includes the costs associated with listing of Equity Shares such as annual listing fees and fees payable to share transfer agents or such other expenses required to be incurred as per the applicable securities law

DFM Foods Ltd. is in the business of manufacturing, selling and marketing of packaged snack foods. Launched in 1984, Crax was India's first successful packaged snack food. In September 2019, US-based private equity (PE) firm Advent International had acquired a majority stake in DFM Foods Ltd. DFM Foods shares have declined about 15% since its listing in December 2016, whereas the stock is up over 3% in 2022 (YTD) so far.

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