1. Prabhat Dairy closes 1% higher on market debut

Prabhat Dairy closes 1% higher on market debut

Prabhat Dairy made a positive debut on the stock markets on Monday with its shares closing 1.1% higher on the day of listing.

By: | Mumbai | Published: September 22, 2015 12:13 AM

Prabhat Dairy made a positive debut on the stock markets on Monday with its shares closing 1.1% higher on the day of listing.

The scrip opened at Rs 115 on the BSE and hit a session high of Rs 118.8 before closing at Rs 116.35.

The company issued shares at a price of Rs 115 apiece during the public issue. Nearly 87.8 lakh shares changed hands on the BSE and NSE during the session, stock exchange data showed.

The Ahmednagar-based dairy company raised Rs 300 through an initial public offering (IPO) by issuing 4.12 crore shares to investors comprising 2.65 core shares of fresh issue and 1.47 crore from existing investors.

The public offering, which opened on August 28, failed to get fully subscribed on the first three days of the issue. The company later extended the issue for three more days and lowered the price band to Rs 115-126 from Rs 140-147 per share.

The IPO didn’t receive a single bid in the foreign portfolio investor (FPI) category while the retail book was subscribed only 0.34 times.

Further, the company had to shelve plans of raising money from anchor investors through a pre-IPO due to adverse secondary market conditions.

Edelweiss Financial Services, Macquarie Capital and SBI Capital were the booking running lead managers for the IPO.

Meanwhile, on Monday, rating agency India Ratings & Research upgraded Prabhat Dairy’s long-term issuer rating to ‘IND A’ from ‘IND BBB+’, predicting a stable outlook.

Prabhat Dairy’s IPO is 15th public issue on the main board this calendar. So far, 14 companies have tapped primary markets this calendar year and cumulatively raised close to Rs 6,000 crore — a three-year high.

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