Initial public offering (IPO) of Parag Milk Foods Limited is set to hit the capital market on May 5,2016 to raise Rs.750 crore. The company got approval for its IPO from capital markers regulator Securities and Exchange Board of India (Sebi) in December 2015. The company is making an offer for sale of up to 20,572,573 equity shares consisting of 14,286,449 equity shares held by Motilal Oswal and IDFC Private Equity.
The company plans to utilize Rs. 1476.80 million for Expansion and Modernization Plan. Further, It will use Rs. 23.20 million in its Subsidiary for financing the capital expenditure requirements in relation to the expansion and modernization of the Bhagyalaxmi Dairy Farm.
Company profile
Parag milk foods limited setforth its business in 1992 offering dairy based products in Pune, Maharashtra in the country . The company started to collect and distribute only Milk during the initial period of its business. Further, the firm expanded its brand of dairy based products including cheese, ghee, fresh milk, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages with a target of a wide range of consumer groups through several brands. The company targets retail and institutional customers for the product range like shelf -life food and beverages products. It offers only cow’s milk made products.
Parag company operates in 29 districts across Maharashtra, Andhra Pradesh Karnataka and Tamilnadu through over 3400 villages level milk collection centers. It collects milk from milk farmers through chilling centers and bulk coolers. It’s average daily milk procurement for the financial years 2015 and 2014 was approximately 1.05 million litres and 0.77 million litres, respectively.
The firm has set its subsidiary Bhagyalaxmi Dairy Farm at Manchar in 2005 for the purpose to educate farmers about best practices of breeding, feeding, animal management and improving productivity.
Details of the company’s special products under different Brand name as follows:-
- Gowardhan includes mainly fresh milk in variants such as Vital, Gold, Fresh and T-Star for household consumption. It also offers curd, ghee, paneer, butter, milk powder, Whey proteins, Gulab Jamun mix, shrikhand under this brand.
- Go brand offers mainly cheese products and UHT Milk , Fresh milk Fruit Yogurts, Fresh Cream, Beverages for children and the youth generation.
- Pride of Cow is introduced to sell Premium cow milk for household customers.
- Topp Up brand offers Flavored milk in six flavours to youth generations.
Positive outlook of the Firm
- Well Established Brands Targeting a Range of Consumer Groups.
- Integrated Business Model that encompasses the entire value chain of the dairy based food and beverages business and includes a range of activities including manufacturing and processing to branding and distributing a wide variety of products.
- Diversified Product Portfolio like premium fresh and UHT milk, ghee, cheese, milk powders, whey proteins, dairy based beverages, curd, paneer, shrikhand, fruit yoghurts and fresh cream.
- Growing Pan-India Distribution Network
- Established Track Record of Growth and Financial Performance
Objects Of The Issue
1) To meet the capital expenditure requirements in relation to expansion and modernization of existing manufacturing facilities of the Company at Manchar and Palamaner.
2) To improve marketing and distribution infrastructure.
- Investment in Subsidiary for financing the capital expenditure requirements in relation to the expansion and modernization of the Bhagyalaxmi Dairy Farm;
3. Partial repayment of the Working Capital Consortium Loan;
2) General Corporate Purposes.
Summary Of Issue: See Parag Milk Foods Prospectus here
| Issue Open:- | May 4, 2016 – May 6, 2016 |
| Issue Type | 100% Book Built Issue IPO |
| Issue Size (Shares) | Equity Shares of Rs. 10 |
| Issue Size in (Value) | Rs. Crore |
| Face Value | Rs. 10 Per Equity Share |
| Issue Price | Rs. 220 to Rs. 227 Per Equity Share |
| Market lots | 65 Shares |
| Minimum Order Quantity | 65 Shares |
| Listing At | BSE, NSE |
The Public offer includes
| Particular | Number Of Equity Shares |
| Fresh Issue of | Equity Shares aggregating up to Rs. 300 crore |
| Offer For sale of | Up to 20,572,573 Equity Shares |
Promoters Of the Company:-
- Devendra Shah:- He is 51 years old. He is a Promoter and the Executive Chairman of our company.
- Pritam Shah:- He is 45 years old. He is a Promoter and the Managing Director of the Company.
- Parag Shah:- He is 48 years old. He has an experience of 23 years in the dairy industry.
Financials:-
| Particulars | For the year/Period ended (Rs. in Million) | ||||
| Financial Year | 31-Mar-15 | 31-Mar-14 | 31-Mar-13 | 31-Mar-12 | 31-Mar-11 |
| Total Equity & Liabilities | 9239.32 | 8202.11 | 6901.43 | 6024.02 | 4744.89 |
| Total Assets | 9239.32 | 8202.11 | 6901.43 | 6024.02 | 4744.89 |
| Total Revenue | 14420.47 | 10882.78 | 9285.14 | 8967.97 | 6597.78 |
| Total Expenses | 13322.84 | 10059.44 | 8416.31 | 8175 | 6081.57 |
| Profit After Tax (PAT) | 294.72 | 145.87 | 220.48 | 151.54 | 6.27 |
Subscription Figures
| Number of Times Issue is Subscribed (BSE + NSE) | |||||
| As on Date & Time | QIB | NII | RII | Employee | Total |
| Shares Offered / Reserved | 10,388,303 | 5,098,447 | 3,398,964 | 300,000 | 19,185,714 |
| Day 1 – May 4, 2016 17:00 IST | 13% | 3% | 15% | 3% | 10% |
| Day 2 – May 5, 2016 17:00 IST | 13% | 22% | 50% | 73% | 23% |
Parag Milk Foods IPO Allotment Status:
Please keep looking for this space for Allotment details after couple of Issue closure. One can check the Allotment details with either PAN number or Application number or DP Client Id on the link given below.
All you need to follows are these steps.
- Go to Parag Milk Food IPO Allotment Status link here
- Select IPO as Parag Milk Foods
- Enter your PAN or Application No. or DP Client Id
It may take few seconds so be little patient. If you have not got the shares, please check the basis of allotment here on this link
Parag Milk Foods IPO Listing Date
We will update the date here once it is declared.
Lead Manager Details:-
1) Kotak Mahindra Capital Company Limited
1st Floor, 27 BKC, Plot No. 27, “G” Block,
Bandra Kurla Complex, Bandra (East),
Mumbai 400 051 Tel: (91 22) 4336 0000 Fax: (9122) 6713 2447
E-mail: parag.ipo@kotak.com Investor Grievance ID: kmccredressal@kotak.com
Website: www.investmentbank.kotak.com
Contact Person: Ganesh Rane
SEBI Registration No.: INM000008704
2) JM Financial Institutional Securities Limited
7th Floor, Cnergy, Appasaheb Marathe Marg Prabhadevi,
Mumbai 400 025 Tel: (91 22) 6630 3030 Fax: (91 22) 6630 3330
E-mail: parag.ipo@jmfl.com Investor Grievance E-mail: grievance.ibd@ jmfl.com
Website: www.jmfl.com
Contact Person: Lakshmi Lakshmanan
SEBI Registration No.: INM000010361
3) IDFC Securities Limited
Naman Chambers, C-32, G Block, Bandra Kurla Complex Bandra (East),
Mumbai 400 051 Tel: (91 22) 6622 2600 Fax: (91 22) 6622 2501
Email: parag.ipo@idfc.com Investor Grievance Email: investorgrievance@idfc.com
Website: www.idfccapital.com
Contact Person: Akshay Bhandari
SEBI Registration No.: MB/INM000011336
4) Motilal Oswal Investment Advisors Private Limited
Motilal Oswal Tower, Rahimtullah Sayani Road,
opposite Parel ST Bus Depot,.Prabhadevi,
Mumbai 400 025 Tel: (91 22) 3980 4380 Fax: (91 22) 3980 4315
E-mail: parag.ipo@ motilaloswal.com Investor Grievance ID: moipalredressal@motilaloswal.com
Website: www.motilaloswal.com
Contact Person: Subodh Mallya
SEBI Registration No.: INM000011005
Registrar To The Issue:-
Karvy Computershare Private Limited Karvy Selenium,
Tower B, Plot 31-32 Gachibowli,
Financial District Nanakramguda,
Hyderabad 500 032 Tel : (91 40) 6716 2222; Fax: (91 40) 2343 1551;
Email: einward.ris@karvy.com Investor grievance E-mail:parag.ipo@karvy.com;
Website: https://karisma.karvy.com
Contact Person: M. Murali Krishna;
SEBI Registration No.: INR000000221
Registered Office Details:-
Flat No.1, Plot No. 19, Nav Rajasthan Society,
S.B. Road, Shivaji Nagar, Pune 411 016;
Corporate Office: 20th floor, Nirmal Building, Nariman Point, Mumbai 400 021
Contact Person: Rachana Sanganeria, Company Secretary and Compliance Officer;
Tel: (91 22) 4300 5555; Fax: (91 22) 4300 5580;
Email: cs@paragmilkfoods.com
Website: www.paragmilkfoods.com;
Corporate Identity Number: U15204MH1992PLC070209
