The Rs 760-crore IPO of dairy firm Parag Milk Foods was subscribed 10 per cent on the first day of the issue.
According to a report in PTI: The offer received bids for 19,71,385 shares against the total issue size of 1,91,85,714 shares on first day. The issue closes on May 6.
Parag Milk is looking to raise around Rs 760 crore through the IPO, whose price band has been fixed at Rs 220-227 per share. Shares of Parag Milk are proposed to be listed on BSE and NSE.
The category reserved for qualified institutional buyers (QIBs) was subscribed 13 per cent, non-institutional investors 3 per cent and retail investors 15 per cent. Parag Milk has already got commitments for shares worth Rs 343 crore from anchor investors.
This is the third initial public offer in less than a week to hit the market after Thyrocare Technologies and Ujjivan Financial Services.
The offer comprises fresh issue of equity shares worth Rs 300 crore and an offer for sale of over 2 crore equity shares. The proceeds would be utilised towards expansion and modernisation as well as investment in its subsidiary.
Kotak Mahindra Capital Company Ltd, JM Financial Institutional Securities Ltd, IDFC Securities Ltd and Motilal Oswal, Parag Milk Foods Investment Advisors Private Ltd are the book running lead managers for the offer.
Parag is an integrated dairy company with presence in over twenty product categories. While the company’s products are sold nationally, over half of its revenues are earned from western India.
It commenced business in 1992 with collection and distribution of milk and has now developed into a dairy-based branded consumer products company with an integrated business model.