Prabhat Dairy Limited has constituted an escrow committee consisting of Independent Directors- Bhaskar Gaikwad, Abdul Samad and Vaibhav Parjane to monitor the funds to the extent of Rs500cr which are to be kept in escrow.
The company has created an escrow on fixed deposits worth Rs500cr with Yes Bank Ltd. The company board at its meeting held on November 13, 2020 had directed the management to comply with Securities Appellate Tribunal (SAT) order dated November 9, 2020.
The company stock was in demand in the early morning trade on Thursday. At around 9.36 am, Prabhat Dairy Ltd was trading at Rs75.50 per piece up by Rs4.8 or 6.79% per piece from its previous closing of Rs70.70 on the BSE. The scrip opened at Rs74.45 and has touched a high and low of Rs75.50 and Rs73.15 respectively.
SAT had quashed the Securities and Exchange Board of India’s (SEBI’s) order directing Prabhat Dairy to deposit Rs1,292cr in connection with a dispute over payment to shareholders.
Instead, the tribunal directed the company to deposit just R500cr in a separate escrow account within 10 days, asking it to not utilise the money till a decision is taken on distributing the amount to its minority shareholders.
This was after all the stakeholders that the company had filed an appeal with SAT against an ex-parte ad-interim order dated October 20, 2020 passed by SEBI.