Shares of Dodla Dairy surged 19 per cent to Rs 548 on the BSE in Monday’s intra-day trade after the company announced the acquisition of dairy products company Sri Krishna Milks Private Limited (SKMPL) for a cash consideration of Rs 50 crore.
“The company has executed a Business Transfer Agreement with Sri Krishna Milks Private Limited (SKMPL) for the acquisition of Business as a ‘going concern’ and on a slump Purchase basis for consideration of Rs 50 crore,” Dodla Dairy said in an exchange filing on Saturday, March 19, 2022.
The object of acquisition is expansion of business of the company. The acquisition will be completed around two months from the date of agreement. SKMPL is mainly into procuring milk, manufacturing, and selling dairy products (milk and milk products).
Dodla Dairy had debuted on the bourses on June 28, 2021. It had raised Rs 520 crore through initial public offer (IPO) by issuing shares at price of Rs 428 per share. The stock had touched a record high of Rs 672 on November 11, 2021. It hit a 52-week low of Rs 385 on February 24, 2022.
Source: Business-Standard