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    Saturday , May 07, 2016

   Parag Milk extends IPO by 3 days; revises price band

   Publication: The Financial Express , Agency:Bureau
   Edition: Delhi/Kolkata/Bangalore/Chandigarh/Pune/Ahmedabad/Hyderabad/Chennai/Mumbai , Page No: 11 , Location: Middle-Left , Size(sq.cms): 180
  

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Parag Milk extends IPO by 3 days; revises price band
fe Bureau
Mumbai, May 6: The initial public offering (IPO) of Parag Milk Foods has been extended for three more days and the price band has been lowered to Rs 215- Rs 227 from Rs 220- Rs 227. The issue will now close on May ll.
The quota for qualified in­stitutional buyers (QIB) failed to get fully subscribed as re­quired by the rules for an IPO. Investors bid for for 57 lakh shares or 55% of the 103 lakh shares reservedfor them, data from the exchanges show.
A release by the company said the closure date had been extended to "accommodate pending demand from certain international and domestic investors against the back­drop of volatile stock markets during the week."
The company had issued 1.51 crore shares at Rs 227 to anchor investors, including Nomura Investment Fund, Morgan Stanley and Tata Bal­anced Fund, raising Rs 342 crore.
Parag Milk Foods IPO Day 3
N-NArendra 07.05 - 0101-1.jpg
The IPO was subscribed 1.32 times on the third day (Fri­day) as bids were received for 2.54 crore shares against 1.91 crore shares on offer. The re­tail book was subscribed 1.71 times while the HNI quota was bid for nearly 2.65 times. The employees quota was not com­pletely subscribed, with bids coming in for 2.8 lakh shares against 3 lakh shares re­served.
The company's Rs 766 crore IPO includes a fresh issue of shares worth Rs 300 crore and an offer for sale (OFS) worth Rs 466 crore.
At the upper end of the price band, the issue is priced
at50.4 times its FY15 earnings. The company 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.
The company reported a net profit of Rs 32 crore for the nine months to December 2015. The EBITDA stood at Rs 108 crore at the end of Decem­ber, while the total debt was Rs 363 crore.
The book running lead managers to the issue are Ko-tak Mahindra Capital, JM Fi­nancial Securities, IDFC Se­curities and Motilal Oswal Investment Advisors.
 
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Parag Milk extends IPO by 3 days; revises price band
Summary:
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Date: Saturday , May 07, 2016
Publication: The Financial Express, Agency: Bureau
Edition: Delhi/Kolkata/Bangalore/Chandigarh/Pune/Ahmedabad/Hyderabad/Chennai/Mumbai, Page No: 11, Location: Middle-Left, Size(sq.cms): 180