Small-Cap Snacks Maker Rallies 20% for 2nd Straight Session on Delisting Proposal

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Small-Cap Snacks Maker Rallies 20% for 2nd Straight Session on Delisting Proposal
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the packaged snack foods manufacturer DFM Foods (NS: DFMF ) rallied 20% to Rs 302.85 apiece, hitting the upper circuit for the second consecutive session on Tuesday, following its promoters' proposal to delist the company’s shares from domestic stock exchanges.

On Monday, the private equity firm Advent International, which holds a 73.7% stake in the snacks maker, announced the proposal to delist the company from NSE and BSE.

The PE firm holds a majority stake in DFM Foods through its subsidiary AI Global Investment. In a regulatory filing, it stated its intention to acquire all the equity shares held by public shareholders, either individually or collectively.

"We are pleased to inform you that JM Financial Limited (NS: JMSH ) has been appointed as the manager to the delisting proposal," the company added.

By delisting DFM Foods from stock exchanges, AI Global, along with the promoter group of the small-cap company will get its complete ownership, providing them with greater operational flexibility to support the Crax-maker’s business and invest accordingly in it.

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