Prabhat Dairy plans to raise around Rs 300 cr through IPO

Milk and dairy products firm Prabhat Dairy plans to garner up to Rs 300 crore by issuing fresh equity shares and offer for sale of up to 1.47 crore scrips. The company has fixed price band of Rs 140 to Rs 147 per equity share. The issue will open its initial public offer for subscription on August 28 and close on September 1.

The issue comprises fresh issue of shares worth Rs 300 crore and an offer for sale of up to 1,47,06,000 equity shares by existing shareholders. "The net proceeds from the fresh issue will be utilised for part pre-payment of loans availed by company and its wholly-owned subsidiary SAIPL, capital expenditure and general corporate purpose," Prabhat Dairy Chairman and MD S R Nirmal told reporters here. The company is an integrated milk and dairy products firm catering to institutional as well as retail customers.

It has large, automated production facilities at Shrirampur in Ahmednagar and at Navi Mumbai, with an aggregate milk processing capacity of 1.5 million litres per day as of June 30, Nirmal said. The equity shares are proposed to be listed on BSE and National Stock Exchange of India Ltd (NSE).