he initial public offer (IPO) of Pune-based dairy firm Parag Milk Foods Ltd successfully closed on Wednesday with 1.15 times subscription from institutional investors.
The firm had been forced to cut the issue price and extend closing by three days as it could not win full participation by institutional investors. It lowered its price band to Rs215-227 a share fromRs220-227. On 6 May, the portion set aside for institutions had only garnered bids for about 60%, and Parag extended its three-day IPO to 11 May.
The Securities and Exchange Board of India's Issue of Capital and Disclosure Requirements stipulate full subscription from institutional investors.
Based on the price band, the firm raised Rs742-760 crore, of which Rs300 crore will go to Parag Milk as fresh capital. The remainder will go to shareholders including IDFC Private Equity and Motilal Oswal Financial Services Ltd.
On Wednesday, institutions bid for a little more than 12.2 million shares compared with the revised 10.6 million shares on offer. Initially, the company had set aside nearly 10.4 million shares for institutions.
Non-institutional investors, or high net-worth individuals, ordered 3.01 times the shares earmarked for them; retail investors bought 2.12 times the stock kept aside for them, data showed.