Parag Milk mops up Rs 343 crore from anchor investors

Parag Milk Foods today raised nearly Rs 343 crore from anchor investors ahead of its initial share sale starting Wednesday.

The company allotted shares to the anchor investors at Rs 227 apiece, the upper end of the price band fixed for the IPO.

This would be the third initial public offer in less than one week to hit the market after Thyrocare Technologies and Ujjivan Financial Services.

In a communication to the exchanges, Parag Milk said it has alloted more than 1.51 crore shares to 17 anchor investors. At the price of Rs 227 apiece, it would be worth nearly Rs 343 crore.

Anchor investors include Abu Dhabi Investment Authority, Alberta Teachers Retirement Fund Board, Copthall Mauritius Investment Ltd, Government Pension Fund Global, Morgan Stanley Mauritius Company Ltd, Nomura India Investment Fund Mother Fund and Tata Balanced Fund.

The issue opens tomorrow and closes on May 6.

Parag Milk is looking to raise around Rs 760 crore through the IPO, whose price band has been fixed at Rs 220-227 per share.

The offer comprises fresh issue of equity shares worth Rs 300 crore and an offer for sale of over 2 crore equity shares.

The proceeds would be utilised towards expansion and modernisation as well as investment in its subsidiary.

Kotak Mahindra Capital Company Ltd, JM Financial Institutional Securities Ltd, IDFC Securities Ltd and Motilal Oswal Investment Advisors Private Ltd are the book running lead managers for the offer.

Shares of Parag Milk are proposed to be listed on BSE and NSE.

Maharashtra-based Parag Milk, which began its operations in 1992, is now one of the leading manufacturers and marketers of dairy-based branded foods in the country.