The public issue comprises fresh issue of equity shares worth Rs 300 crore and an offer for sale of up to 20,572,573 Equity Shares comprising of 14,286,449 Equity Shares by the investor selling shareholders and 6,286,124 Equity Shares by other selling shareholders.The Issue includes a reservation of 3 Lac Equity Shares for subscription by Eligible Employees.
The proceeds of the issue will be utilised for expansion and modernisation as well as investment in its subsidiary.
The firm had received Sebi’s permission for the public offer in December last year.
According to sources, the company’s initial share-sale programme will open for subscription on May 4, 2016 and close on May 6, 2016. It is expected to garner an estimated Rs 750 crore from the IPO including fresh issue.
The issue is being managed by Kotak Mahindra Capital Company Limited, JM Financial Institutional Securities Limited, IDFC Securities Limited and Motilal Oswal Investment Advisors Private Limited.
The equity shares offered through the issue are proposed to be listed on BSE and NSE.
Incorporated in 1992, Pune based Parag Milk Foods Ltd is now one of the leading manufacturers and marketers of dairy-based branded foods in the country. The Company is involve in collection, distribution of milk and producing dairy-based branded consumer products including cheese, ghee, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages. All products of the company are made from cow milk.
Company’s manufacturing facilities are located at Manchar in the Pune district of Maharashtra and Palamaner in the Chittoor district of Andhra Pradesh. Company’s supply chain network includes procurement from 29 districts across Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu, through over 3,400 village level milk collection centres. Parag Milk Foods Brand and product lineup under them:
Gowardhan brand is targeted at house-hold consumption and to be used as cooking ingredients. The products under this brand includes fresh milk, curd products (curd, trim curd and buttermilk), ghee, paneer, butter, milk powders, whey proteins, gulab jamun mix and shrikhand.
Targeted at children and the youth generation, primarily for direct consumption. The products under this brand includes cheese products, UHT milk (go milk, go slim milk and go supremo milk), fresh milk: go kidz, fruit yoghurts in six flavours, fresh cream and beverages (lassi and buttermilk in two flavours).
3. Pride of Cows
Farm-to-home concept of milk, directly delivered from the farm to a consumer’s door-step, through a subscription model. Targeted at household consumers seeking premium quality cow’s milk. The product include under this brand is cow milk.
4. Topp Up
Targeted at the youth generation and travellers as a source of instant nourishment. The products under this brand includes flavoured milk in six flavours.
1. Well Established Brands Targeting a Range of Consumer Groups
2. Integrated Business Model
3. Diversified Product Portfolio and Customer Base
4. Growing Pan-India Distribution Network
5. Established Track Record of Growth and Financial Performance
6. Experienced Senior Management
The Promoters of the company are:
1. Mr Devendra Shah
2. Mr Pritam Shah and
3. Parag Shah
Objects of the Issue:
The object of the issue are:
1. To meet the capital expenditure requirements for expansion and modernisation of existing manufacturing facilities at Manchar and Palamaner;
2. Investment in Subsidiary for financing the capital expenditure requirements in relation to the expansion and modernisation of the Bhagyalaxmi Dairy Farm;
3. Partial repayment of the Working Capital Consortium Loan; and
4. General corporate purposes.
»» Issue Open: May 4, 2016
»» Issue Type: Book Built Issue IPO
»» Issue Size:
› Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 325.00 Cr
› Offer for Sale of 19,850,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
»» Face Value: Rs 10 Per Equity Share
»» Issue Price: Rs. – Rs. Per Equity Share
»» Market Lot:
»» Minimum Order Quantity:
»» Listing At: BSE, NSE
The Initial Public Offer of Parag Milk comprise of:
A fresh issue of up to (*) equity shares aggregating up to Rs. 325.00 Crores and
An offer for sale up to 19,850,000 equity shares aggregating up to Rs. [*] Crores.