The intial public offering (IPO) of Parag Milk Foods, which was extended for three days with a revised price band of Rs 215-227, received bids for 2.56 crore shares of the total 1.95 crore shares on Monday.
The quota for qualified institutional buyers (QIBs), which had failed to get fully subscribed as required by the rules for an IPO, was bid for 53% or 57 lakh shares of the 103 lakh shares reserved for them, data from the stock exchanges showed.
The retail book was subscribed 1.77 times while the high net-worth individuals bid for the issue nearly 2.63 times.
The employees quota saw bids coming in for 29 lakh shares of the 3 lakh shares reserved. The extended issue will close on May 11.
The firm’s Rs 766 crore IPO includes a fresh issue of shares worth Rs 300 crore and an offer for sale worth Rs 466 crore. It plans to use the proceeds of the offer for expansion and modernisation of its dairy farms, partial repayment of debt and for general corporate purposes.
Parag Milk Foods reported a net profit of Rs 32 crore in the nine months to December 2015 while the Ebitda stood at Rs 108 crore; at the end of December, the total debt was Rs 363 crore. The book running lead managers to the issue are Kotak Mahindra Capital, JM Financial Securities, IDFC Securities and Motilal Oswal Investment Advisors.