Parag Milk Foods to mop-up Rs 750 crore through IPO

Issue open between May 4-6; price band fixed at Rs 220-227 per equity share

Parag Milk Foods' Initial Public Offering (IPO) of shares will remain open for subscription May 4-6 (Wednesday to Friday).

The IPO will comprise sale of 20.57 million shares by investors including Motilal Oswal and IDFC Private Equity.  The price band for the IPO is Rs 220-227 per share. The IPO will raise an estimated Rs 750 crore.

The IPO is handled by Kotak Mahindra Capital, JM Financial Institutional Securities, IDFC Securities, and Motilal Oswal Investment Advisors.

Parag Milk is also looking to raise Rs 300 crore by the issue of fresh shares. The company will spend Rs 150 crore on expansion and modernisation and Rs 100 crore to repay a part of the working-capital loan. "We have plans to invest Rs 150 crore on expansion and modernisation by 2019," said Devendra Shah, chairman of Parag Milks. These apart, the company will utilise Rs 100 crore to repay a part of the working capital consortium loan, said Shah. The equity shares offered through the issue are proposed to be listed on both the exchanges which is BSE and NSE. The company has started its business in the year 1992 and developed itself into a branded dairy based product company.