Parag Milk fixes IPO price band at Rs 220-227

Dairy firm Parag Milk Foods has fixed price band from Rs 220 to Rs 227 per equity share to raise around Rs 750 crore through its initial public offer (IPO).

“We have fixed the price band between Rs 220 and Rs 227 per equity share to raise around Rs 750 crore through IPO. The public issue comprises fresh issue of equity shares worth Rs 300 crore and an offer for sale of over two crore equity shares,” Parag Milk Foods Chairman Devendra Shah told reporters.

The firm is making an offer for sale of up to 20,572,573 equity shares comprising 14,286,449 equity shares by the investor selling shareholders namely Motilal Oswal and IDFC PE.

It plans to invest Rs 150 crore on expansion and modernisation, which is expected to be completed by March 2019, Shah said.

Parag Milk will also utilise Rs 100 crore to repay a part of the working capital consortium loan, he added.

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.

Its initial share-sale programme will open for subscription on May 4 and close on May 6.

The issue is being managed by Kotak Mahindra Capital, JM Financial Institutional Securities, IDFC Securities and Motilal Oswal Investment Advisors.