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IPO gets bids for 3.11 crore shares until 17:00 IST on the last day of bidding

Bids were received for a total of 3.11 crore shares for the initial public offer (IPO) of Prabhat Dairy until 17:00 IST on the last day of the bidding for the IPO today, 4 September 2015, compared with 4.12 crore equity shares on offer. The IPO was subscribed 0.76 times or 76%. It may be recalled that due to poor response from investors, Prabhat Dairy on 1 September 2015 extended the bidding period for its initial public offer (IPO) by three days until today, 4 September 2015, with the company also lowering the price band for the IPO. The bidding for the IPO was previously scheduled to end on 1 September 2015. The price band for the IPO was revised downwards to Rs 115-126 per share from Rs 140-147 per share. There is a discount of Rs 5 per share for retail investors.

Prabhat Dairy's IPO comprises of fresh issue of equity shares aggregating up to Rs 300 crore and an offer for sale of 1.47 crore shares from existing shareholders. Among the selling shareholders, Nirmal Family Trust has put on block 31.51 lakh equity shares, India Agri Business Fund is offering 65.80 lakh shares, Societe De Promotion Et De Participation Pour La Cooperation Economique is selling 49.52 lakh equity shares and REAL Trust is selling 23,000 shares.

Promoted by Sarangdhar Ramchandra Nirmal, Vivek Sarangdhar Nirmal and Nirmal Family Trust, Prabhat Dairy is an integrated milk and dairy products company in India, catering to institutional as well as retail customers. The company produces and sells a range of pasteurized milk and other dairy products to retail customers under the Prabhat, Flava and Milk Magic brands.

The company intends to utilise the IPO proceeds to partly pre-pay loans availed by company and its wholly owned subsidiary, Sunfresh Agro Industries (SAIPL), amounting to Rs 185 crore. The company also intends to utilise the IPO proceeds to meet capital expenditure of Rs 35.06 crore by wholly owned subsidiary SAIPL.

On consolidated basis, Prabhat Dairy's net profit rose 1.29% to Rs 21.05 crore on 16.81% growth in net sales to Rs 1000.77 crore in the year ended 31 March 2015 (FY 2015) over the year ended 31 March 2014 (FY 2014).

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