<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=parag">Dairy firm Parag Milk Foods</a> on Tuesday said that it will launch its initial public offering (IPO) on 4 May to raise Rs. 300 crore in fresh capital.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=parag">Dairy firm Parag Milk Foods</a> on Tuesday said that it will launch its initial public offering (IPO) on 4 May to raise Rs. 300 crore in fresh capital.
The firm has priced the offer in a band of Rs.220-227 per equity share. The three-day offering will close on 6 May.
A discount of Rs.12 per equity share will be offered to all retail investors and eligible employees, the company said Tuesday.
Parag will allot at least 75% of the shares on a proportionate basis to qualified institutional buyers, 15% to non-institutional investors, comprising high net-worth individuals, and 10% to retail investors.
Based on the price band set by the firm, the total issue size will range between Rs.752.6 crore and Rs.767.6 crore, of which the firm’s promoters and private equity (PE) investors will collectively garner upward of Rs.450 crore by selling 20.57 million shares.
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=idfc">IDFC Private Equity</a>, the wholly-owned subsidiary of IDFC Ltd, has offered to sell about 58.4% of its holding. The Mumbai-based entity, which holds about 20.1% stake, will sell about 8.26 million shares, as per the company’s red herring prospectus (RHP).
Other PE investors in the company—India Excellence Business Fund (IBEF) and IBEF-1 sponsored by Motilal Oswal Financial Services Ltd—will sell 6.02 million shares.
In September 2012, Parag Milk had raised Rs.155 crore from IDFC Alternatives.<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=motilal"> Motilal Oswal </a>had invested Rs.55 crore in 2008.
Mint had in December 2013 reported that Parag Milk raised $15 million as a loan facility from the International Finance Corp. (IFC), a member of the World Bank Group. It raised the capital for expanding its milk-processing facilities. It planned to expand its supply chain linkages across over 50,000 farmers and food suppliers, and improve food safety standards. The company has been diversifying into value-added products such as whey powder and ultra-high-temperature milk.
Parag Milk, which manufactures and markets dairy-based branded products under the Gowardhan, Go and Pride Of Cows brands, filed its draft proposal for a stock exchange listing on 30 September. It received Securities and Exchange Board of India (Sebi) approval for the public issue on 29 December.
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=kotak">Kotak Mahindra Capital Company Ltd</a>, <a style="color: #000080;" href="http://JM+financial">JM Financial Institutional Securities Ltd</a>, IDFC Securities Ltd and Motilal Oswal Investment Advisors Pvt. Ltd are merchant bankers to the issue.
Parag Milk plans to use about Rs.150 crore of the fresh capital to meet capital expenditure (capex) requirements in relation to expansion and modernization of existing manufacturing facilities and to improve the marketing and distribution infrastructure.
The remaining amount will be used toward repayment of debt and to meet the working capital requirement.
In 2014-15, Parag Milk Foods reported a revenue of Rs.1,440.8 crore, up from Rs.1,087 crore in the previous year. It reported a profit of Rs.29.4 crore in 2014-15, up from Rs.14.5 crore, as per the company’s prospectus.
Parag Milk is the tenth company in calendar year 2016 to announce its IPO.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-parag-milk-foods-files-ipo-plans-to-raise-50m-14267/">Parag Milk Foods files IPO, plans to raise $50m</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/milk-mantra-in-talks-with-samara-capital-to-raise-rs200-crore-35617/">Indian dairy firm Milk Mantra in talks with Samara Capital to raise $30m</a>
<h4 style="text-align: justify;">This article was first published on <a style="color: #000080;" href="http://www.livemint.com">Livemint.com</a></h4>

Dairy firm Parag Milk Foods on Tuesday said that it will launch its initial public offering (IPO) on 4 May to raise Rs. 300 crore in fresh capital.

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