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DFM Foods hits the roof on delisting proposal

16-Aug-22 13:30 Hrs IST

AI Global Investments (Cyprus) PCC and AI Darwin (Cayman) expressed their 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 i.e., BSE and National Stock Exchange of India (NSE).

AI Global Investments (Cyprus) PCC held 73.70% stake or 3,70,54,137 shares of DFM Foods as on 30 June 2022.

JM Financial has been appointed as the manager to the delisting proposal.

The discovered price will be determined through the reverse book building process specified in the delisting regulations.

We will separately inform the floor price determined in accordance with the aforesaid provisions, in due course,” JM Financial said in an initial public announcement.

Offering the rationale for the proposed delisting, DFM Foods said, The proposed delisting will enable the promoter along with members of the promoter and promoter group of the company to obtain full ownership of the company which will in turn provide increased operational flexibility to support the company's business and make investments in the company.

The company further said that the delisting proposal will provide the public shareholders an opportunity to realize immediate and certain value for their equity shares; and 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, the initiator of packaged snack foods in the Indian market, is engaged in the business of manufacturing, selling, and marketing of packaged foods and has been a leader in the space for over 30 years. The company markets its products under the brand names of “CRAX”, “CURLS”, “NATKHAT” and “FRITTS”. The product portfolio comprises of corn rings, corn puffs, wheat puffs, cheese balls, corn and potato sticks, potato chips and traditional namkeens, sold through an extensive distribution network. The company has state of the art processing units located at Ghaziabad, Greater Noida.

The company reported a net loss of Rs 14.41 crore in the quarter ended June 2022 as against net loss of Rs 1.73 crore during the previous quarter ended June 2021. Sales rose 32.10% to Rs 145.90 crore in Q1 FY23 over Q1 FY22.