Prabhat Dairy's IPO subscribed 42% at the end of Day 5

The initial public offering (IPO) of Prabhat Dairy was subscribed 42 per cent at the end of the fifth day of subscription today despite a cut in issue price.
The IPO received bids for over 1.72 crore shares against an offer of more than 4.12 crore equities, translating a subscription of 42 per cent, according to data available with the NSE till 1700 hrs.
Till yesterday, qualified institutional buyers (QIBs) bid for 56 per cent and retail investors applied for just 23 per cent of the portion reserved for them. However, portion reserved for HNIs and corporates segment failed to find takers.

The bidding for the IPO, which started on August 28, would conclude tomorrow.
The integrated milk and dairy ingredients firm has hit the capital markets to raise Rs 300 crore through fresh issuance and an offer for sale of up to 1,47,06,000 shares by existing shareholders.
On September 1, the final day of the original issue closure period, the company had lowered the price band to Rs 115-126, from Rs 140-147.
Besides, the IPO was extended by three days to September 4 as the issue failed to generate interest among investors on its final day of offering. It also offered a discount of Rs 5 a share to retail investors.

The proceeds from the fresh issue would be used for repayment of loans, capital expenditure and general corporate purpose.