Moneycontrol Bureau Parag Milk Foods debuted on the bourses at Rs 217.50, up over 1 percent from its issue price of Rs 215 per share. However, the stock quickly climbed within minutes of listing, gaining over 13 percent touching intraday high of Rs 242.70 per share.
The dairy firm had its extended IPO and revised price band to Rs 215-227 per share. The issue period was from May 4-11. The price band was previously fixed at Rs 220-227. The company's Rs 760-crore initial public offering (IPO), which was extended by three days, was oversubscribed 1.83 times on the final day of the offer which ended on May 11.
Maharashtra-based Parag Milk, which began operations in 1992, is a leading manufacturers and marketers of dairy-based branded foods in the country.
It derives 57 percent of sales from value‐added products like Cheese, UHT Milk, Ghee, Whey products, Flavored milk, Buttermilk and other value‐added products.
Parag Milk Foods has largest cheese plant with 32 percent market share in India next only to Amul with a market share of 42 percent. About 12 percent of sales flow from B2B segment including hotels, restaurants and caterers. It supplies cheese to Dominos, KFC and Pizza Hut. It has a robust milk procurement network with 3400 village level collection centers that are present in 29 districts across the states of Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. It has built strong relationships with milk farmers through continuous engagement. Of the total issue proceeds Rs 148 crore will be utilised towards expansion and modernisation of existing manufacturing facilities at Manchar and Palamaner and towards improving the marketing and distribution infrastructure. Rest Rs 2 crore will be invested in its subsidiary Bhagyalaxmi Dairy Farm for its expansion and modernisation.
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