The promoters of Parag Milk Foods plan to purchase another 4.2 million shares from the open market in the next few quarters. This will increase their stake in the firm to 51 per cent in the next few months.
As of September 30, the promoters had a total shareholding of 45.96 per cent in the company. Promoters, led by company chairman and managing director Devendra Shah, have already purchased 200,000 shares from the open market to increase their shareholding in the company.
“We intend to raise our shareholding stake to 51 per cent going ahead, reposing faith in the long-term growth prospects of the business. Our efforts are in the strategic direction to achieve Vision 2020, which demonstrates our long-term desire to delight consumers with healthy and nutritious products,” said Devendra Shah, chairman, Parag Milk Foods.
The promoters had also pledged 36 per cent of their overall shareholding in the company, of which, 31 per cent has been repaid to lenders.
“Over the last few months, we have repaid around 31 per cent loans and are committed to further reducing it. We aim to bring down the promoter group pledge by 20 per cent over the coming quarters,” said Shah.
The company has been in the dairy business for almost three decades. As an integrated fast-moving consumer goods player, it makes products under the brand Gowardhan. Under brand name ‘Go’, it has products like cheese, UHT milk, buttermilk, lassi, and yoghurt, among others.