Milk and milk products manufacturer, Parag Milk Foods, is set to tap capital markets through its initial public offering (IPO), which will be open from May 4 to May 6. The public offer is priced between Rs 220 and Rs 227.
The IPO includes a fresh issue of shares worth Rs 300 crore and an offer for sale amounting to Rs 466 crore when calculated on the upper limit of the price band. Nearly 75% of the issue will be reserved for qualified institutional buyers, while high net worth individuals and retail investors will be allowed to bid for 15% and 10% of the issue, respectively.
The firm plans to use the proceeds of the offer for expansion and modernisation of one of its dairy farms, partial repayment of debt and for general corporate purposes. Parag Milk Foods reported a net profit of Rs 32 crore and its EBITDA stood at Rs 108 crore in the nine months ending in December 2015. Its total debt was Rs 363 crore in the same period.