In January 2019, Maharashtra-based Prabhat Dairy’s shareholders seemed primed for a windfall. The Indian dairy sector had drawn a lot of interest a lot of interest The Ken Drums has the fuel, can Danone provide the spark? Read more from foreign giants, and the company had found a rich suitor. It announced plans to sell off the majority of its business to Tirumala Milk, the Indian subsidiary of French dairy major Lactalis for Rs 1,700 crore ($234 million).
The curious case of Prabhat Dairy’s difficult delisting
In January 2019, Prabhat Dairy agreed to a Rs 1,700 crore sale to a rich, foreign suitor. Three months later, the deal was done. Over two years later, its shareholders are yet to see a dime
When Prabhat Dairy sold its core business to French dairy major Lactalis in early 2019, it committed to sharing the proceeds with shareholders
Two years on, public (minority) shareholders of the company still haven’t got their piece of the proceeds
Suspicions of fraud, regulatory interventions and a forensic audit have held up the process
SAT’s order delinking the company’s delisting from the forensic audit offers hope, but it’s not a done deal yet