India’s Prabhat Dairy sees muted gains on listing

Shares of Prabhat Dairy rose about 4% in initial trade but later pared gains following subdued subscription for the firm’s primary issue. Visual sourced from Prabhat Fresh website.

Shares of Prabhat Dairy Ltd (PDL) rose about 4% on listing on Monday but later pared gains following subdued subscription for the firm’s initial public offer (IPO).

At 10.55am, PDL shares traded 1.8% higher from their issue price of Rs.115 apiece at Rs.117.05 on the BSE, while the 30-share benchmark Sensex was down 0.37% at 26,122.44 points. PDL shares touched a high and low of Rs.120 and Rs.112.90 per share, respectively.

The company cut the price band of the issue from Rs.140-147 earlier to Rs.115-126 last week and extended the issue closing date by three days. The firm managed to raise Rs.360 crore at the lower end of the price band of the offer.

Edelweiss Financial Services Ltd, SBI Capital Markets Ltd and Macquarie India Advisory Services Pvt. Ltd were managing the IPO. Out of the Rs.360 crore, the company will use Rs.185 crore to pay debt, Rs.35 crore for capital expenditure and the remaining for general corporate purposes and to meet issuance expenses.

“This is likely to significantly improve PDL’s credit profile while enhancing its financial flexibility. For FY15, the company posted adjusted net leverage (adjusted net debt/Ebitda) of 3.8x (FY14: 3.5x) and interest coverage (Ebitda/interest) of 2.5x (2.7x),” said rating agency India Ratings and Research in a release on Saturday. Ebitda is earnings before interest, taxes, depreciation and amortization.

India Ratings expects PDL to post 20-25% revenue growth in FY16.

“This will largely be aided by higher growth in the retail business (ghee and curd) with the company’s thrust to increase the share of B2C (business-to-consumer) sales to 35% of the overall sales mix in FY16,” the rating agency said.

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This article was first published on Livemint.com

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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