Parag Milk Foods, a dairy farming in India, storngly came out in the share market today with its shares rising as much as 11 per cent to Rs 240, compared to its issue price of Rs 215 per share. The Rs760 crore initial public offering (IPO) was extended by three days and its price band was revised to Rs 215-227 per share from Rs 220-227 earlier. The IPO was open between May 4 and May 11 and was subscribed by 1.83 times.
Maharashtra-based Parag Milk, which began operations in 1992, is a leading manufacturer and marketer of dairy-based branded foods in the country and plans to use the money raised from fresh shares to expand and modernise existing manufacturing facilities at Manchar and Palamaner and improve its marketing and distribution infrastructure by investing Rs 147.70 crore.
The company also aims to use Rs 100 crore for partial repayment of a consortium loan for working capital, Rs 50 crore for general corporate purposes and company's share of issue expense and Rs 2.30 crore for investment in Bhagyalaxmi Dairy Farm.