On December 21st, shares of Indian snack food firm DFM Foods Ltd. were delisted when Advent International rejected the discovered price. The reverse book-building method led to a discovered price of Rs 525 per share.To acquire a 26.3% stake in the company, Advent Intl has made a counteroffer to purchase shares at Rs 467 during the tender window period of December 30 through January 5.
How an item or commodity is valued in the market is called âprice discovery.â
The offering period for this deal was from December 13 to December 19, and Advent has previously declared a floor price of Rs 263.80. Due to the acquirerâs rejection of the revealed price, the public shareholdersâ Demat accounts will soon be credited with their shares.
The private equity firmâs wholly owned subsidiary, AI Global Investments (Cyprus) PCC Limited, owns 73.70 percent of DFM Foods.
Moneycontrol reported in April that sources had heard Advent was considering delisting DFM Foods in order to make âbold, strategic decisionsâ on a company-wide revamp intended to boost performance. According to the source, private equity firms can feel more comfortable making risky moves in a private company than in a publicly traded one.