Parag Milk extends IPO by three days; revises price band

Dairy firm Parag Milk Foods has extended its IPO for further three days to May 11 and revised its price band to Rs 215-227 per share, even as the public offer got oversubscribed on its third day today.
"The issue closure date has been extended by three working days to accommodate pending demand from certain international and domestic investors against the backdrop of volatile stock markets in the week of May 2-6, 2016," the company said in a statement today.
The Rs 760-crore IPO which had opened for subscription on Wednesday, has been oversubscribed 1.32 times, receiving bids for 2,54,17,860 shares against the total issue size of 1,91,85,714 shares, as per data available with the NSE till 1700 hrs today.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 55 per cent, while non-institutional investors has been oversubscribed 2.66 times.
Retail investors category was also oversubscribed 1.72 times, NSE data showed.
Sources said that the IPO has been extended amid relatively lower subscription level of shares reserved for certain investor classes.

The offer was earlier scheduled to close today, while the price band was previously fixed at Rs Rs 220-227 a share.
The offer comprises fresh issue of equity shares worth Rs 300 crore and an offer for sale of over 2 crore equity shares.
The company has already finalised allocation of 1,51,03,935 shares to anchor investors at a price of Rs 227 a share aggregating to Rs 342.86 crore to anchor investors.

The shares offered through the issue are proposed to be listed on BSE and NSE.
The BRLMs to the issue are Kotak Mahindra Capital Company, JM Financial Institutional Securities, IDFC Securities and Motilal Oswal Investment Advisors Private.
This is the third initial public offer in less than a week to hit the market after Thyrocare Technologies and Ujjivan Financial Services.
Maharashtra-based Parag Milk, which began its operations in 1992, is now one of the leading manufacturers and marketers of dairy-based branded foods in the country.