Hatsun Agro Product, a largest private sector dairy company in India based in Chennai, said the company's board has approved preferential allotment of shares. The company intends to rise about Rs 300 million.

The board has decided to issue shares at Rs 300 a share of Re. 1 each or at the price determined in accordance with SEBI regulations, whichever is higher. As a part of preferential allotment, the company will issue shares worth Rs 120 million to P. Vaidyanathan, Karta of P. Vaidyanathan (SHUF), followed by VVV & Sons Edible Oils (Rs 60 million, Satyanarayan Dhanushkodi (Rs 45 million), Sankaranarayanan Dhanushkodi (Rs 45 million) and Jegamohan Aravandy (Rs 30 million).

However, the aforesaid preferential allotment is subject to approval of the shareholders.  

Shares of the company declined Rs 35.4, or 9.57%, to settle at Rs 334.55. The total volume of shares traded was 8,759 at the BSE (Tuesday).