Shares of DFM Foods Ltd. hit the upper circuit for the second day in a row on Tuesday after its promoters proposed to buy all shares and delist the stock from the exchanges.
The promoters AI Global (Cyprus) Investments Ltd. and AI Darwin (Cayman) Ltd. proposed to acquire all shares held by public shareholders and voluntarily delist the shares from BSE, NSE. JM Financial has been appointed as the manager to the delisting proposal.
The company believed that the move would provide increased operational flexibility to support its business and reduce compliance costs, according to an exchange filing. The delisting proposal would give shareholders a chance to realise immediate and add certain value for their equity shares, the company said in the filing.
Shares of the company rose 20%. Trading volume is 1.6 times the 30-day average. The share price was above 200-day simple moving average, indicating potential upward price momentum. The relative strength index of the stock is 79, suggesting it may be overbought.
Source: Exchange filing, Bloomberg
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