Bookbuilding IPO | ₹751 Cr | Listed at BSE, NSE | Wed, May 4, 2016 - Wed, May 11, 2016
Parag Milk Foods IPO is a book build issue of ₹750.54 crores. The issue is a combination of fresh issue of 1.37 crore shares aggregating to ₹300.00 crores and offer for sale of 2.06 crore shares aggregating to ₹450.54 crores.
Parag Milk Foods IPO bidding started from May 4, 2016 and ended on May 11, 2016. The shares got listed on BSE, NSE on May 19, 2016.
Parag Milk Foods IPO price band is set at ₹215 per share. The lot size for an application is 65. The minimum amount of investment required by an retail is ₹14,755 (65 shares) (based on upper price). The lot size investment for sNII is 15 lots (975 shares), amounting to ₹2,09,625, and for bNII, it is 72 lots (4,680 shares), amounting to ₹10,06,200.
The issue includes a reservation of up to 3,00,000 shares for employees offered at a discount of ₹12.00 to the issue price.
Dam Capital Advisors Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.
Refer to Parag Milk Foods IPO RHP for detailed Information.
IPO Open
Wed, May 4, 2016
IPO Close
Wed, May 11, 2016
Issue Price
₹215 per share
Market Cap (Pre-IPO)
₹1,808.47 Cr
| IPO Date | 4 to 11 May, 2016 |
| Listed on | Thu, May 19, 2016 |
| Face Value | ₹10 per share |
| Price Band | ₹215 to ₹227 |
| Issue Price | ₹215 per share |
| Lot Size | 65 Shares |
| Sale Type | Fresh capital cum OFS |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Retail Discount | Rs 12.00 per share |
| Employee Discount | ₹12.00 |
| Total Issue Size | 3,42,71,268 shares (agg. up to ₹751 Cr) |
| Fresh Issue | 1,36,98,695 shares (agg. up to ₹300 Cr) |
| Offer for Sale | 2,05,72,573 shares of ₹10 (agg. up to ₹451 Cr) |
| Share Holding Pre Issue | 7,04,15,887 shares |
| Share Holding Post Issue | 8,41,14,891 shares |
| BSE Script Code / NSE Symbol | 539889 / PARAGMILK |
| ISIN | INE883N01014 |
Parag Milk Foods IPO comprises a total issue size of 3,42,71,577 shares. The net offer to the public is 3,39,71,577 shares, after excluding 3,00,000 shares under a preferential allotment. Of the Net offer 2,54,78,687 (75.00%) are allocated to QIB, 50,95,735 (15.00%) allocated to NII 33,97,155 (10.00%) allocated to RII.
| Investor Category | Shares Offered | % of Net Issue | % of Total Issue | Max Allottees |
|---|---|---|---|---|
| QIB Shares Offered | 2,54,78,687 | 75.00% | 74.34% | NA |
| − Anchor Investor Shares Offered | 1,51,03,935 | 44.07% | NA | |
| − QIB (Ex. Anchor) Shares Offered | 1,03,74,752 | 30.27% | NA | |
| NII (HNI) Shares Offered | 50,95,735 | 15.00% | 14.87% | NA |
| Retail Shares Offered | 33,97,155 | 10.00% | 9.91% | 52,263 |
| Preferential Reservations | ||||
| Employee Shares Offered | 3,00,000 | 0.88% | NA | |
| Total Shares Offered | 3,42,71,577 | 100.00% | 100.00% | |
Investors can bid for a minimum of 65 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 65 | ₹13,975 |
| Retail (Max) | 14 | 910 | ₹1,95,650 |
| S-HNI (Min) | 15 | 975 | ₹2,09,625 |
| S-HNI (Max) | 71 | 4,615 | ₹9,92,225 |
| B-HNI (Min) | 72 | 4,680 | ₹10,06,200 |
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII | Up to Rs 2 Lakhs | Yes |
| Only sNII | Rs 2 Lakhs to Rs 10 Lakhs | No |
| Only bNII | Rs 10 Lakhs to NII Reservation Portion | No |
| Only employee | Yes | |
| Employee + RII/NII |
|
Yes for Employee and RII/NII |
Incorporated in 1992, Parag Milk Foods Ltd is Pune based dairy-based branded food producer. Company is involve in collection, distribution of milk and producing dairy-based branded consumer products including cheese, ghee, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages. All products of the company are made from cow milk.
Company's manufacturing facilities are located at Manchar in the Pune district of Maharashtra and Palamaner in the Chittoor district of Andhra Pradesh. Company's supply chain network includes procurement from 29 districts across Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu, through over 3,400 village level milk collection centres. Parag Milk Foods Brand and product lineup under them:
1. Gowardhan
Gowardhan brand is targeted at house-hold consumption and to be used as cooking ingredients. The products under this brand includes fresh milk, curd products (curd, trim curd and buttermilk), ghee, paneer, butter, milk powders, whey proteins, gulab jamun mix and shrikhand.
2. Go
Targeted at children and the youth generation, primarily for direct consumption. The products under this brand includes cheese products, UHT milk (go milk, go slim milk and go supremo milk), fresh milk: go kidz, fruit yoghurts in six flavours, fresh cream and beverages (lassi and buttermilk in two flavours).
3. Pride of Cows
Farm-to-home concept of milk, directly delivered from the farm to a consumer's door-step, through a subscription model. Targeted at household consumers seeking premium quality cow's milk. The product include under this brand is cow milk.
4. Topp Up
Targeted at the youth generation and travellers as a source of instant nourishment. The products under this brand includes flavoured milk in six flavours.
Competitive Strengths:
1. Well Established Brands Targeting a Range of Consumer Groups
2. Integrated Business Model
3. Diversified Product Portfolio and Customer Base
4. Growing Pan-India Distribution Network
5. Established Track Record of Growth and Financial Performance
6. Experienced Senior Management
| Period Ended |
|---|
| Amount in ₹ Crore |
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Expansion and Modernisation Plan | 147.70 |
| 2 | Investment in Subsidiary for financing the capital expenditure requirements in relation to the expansion and modernisation of the Bhagyalaxmi Dairy Farm | 2.30 |
| 3 | Partial repayment of the Working Capital Consortium Loan | 100.00 |
| 4 | General corporate purposes | 28.80 |
| KPI | |
|---|---|
| RoNW | 22.67% |
| Pre IPO | Post IPO | |
|---|---|---|
| Promoter Holding | 61.13% | 47.48% |
| Market Cap | ₹1,808.47 Cr. |
The Parag Milk IPO is subscribed 1.83 times on May 11, 2016 5:00:00 PM (Day 6). The public issue subscribed 2.12 times in the retail category, 1.15 times in the QIB category, and 3.08 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 1.15 | 1,03,88,303 | |
| NII | 3.08 | 50,98,447 | |
| Retail | 2.12 | 33,98,964 | |
| Employee | 1.02 | 3,00,000 | |
| Total | 1.83 | 1,91,85,714 |
Parag Milk Foods offers discount of up to Rs 12 on Issue Price (per Equity Share) to all eligible Retail Individual Bidders and Eligible Employees.
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Fees payable to BRLMs | 1.37 |
| 2 | Selling commission and processing fees for SCSBs | 0.05 |
| 3 | Selling commission and processing/uploading charges for Members of the Syndicate, RTAs and CDPs | 0.06 |
| 4 | Processing/uploading charges for Registered Brokers | 0.08 |
| 5 | Fees payable to Registrar to the Issue | 0.06 |
| 6 | Printing and stationary expenses | 0.68 |
| 7 | Advertising and marketing expenses | 1.83 |
| 8 | Listing fees | 0.01 |
| 9 | SEBI, BSE and NSE processing fees | 0.22 |
| 10 | Fees payable to Legal Counsels | 0.47 |
| 11 | Miscellaneous | 0.46 |
Date Posted: 06 May 2016
BRLM to the Parag Milk Foods Limited issue, has informed the Exchange that the issue closure date has been extended upto 11 May,2015.Post issue modification date has been revised to 12 May,2016.Price band has been revised from 220/- to Rs. 227/- To Rs. 215/- to Rs. 227/- per share
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹215.00 | ₹215.00 |
| Open | ₹215.70 | ₹217.50 |
| Low | ₹215.70 | ₹217.50 |
| High | ₹250.00 | ₹249.70 |
| Last Trade | ₹247.80 | ₹247.00 |
Lead Manager Reports
Parag Milk Foods IPO is a main-board IPO of 3,42,71,268 equity shares of the face value of ₹10 aggregating up to ₹751 Crores. The issue is priced at ₹215 per share. The minimum order quantity is 65.
The IPO opens on Wed, May 4, 2016, and closes on Wed, May 11, 2016.
Kfin Technologies Ltd. is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in Parag Milk Foods IPO using UPI as a payment gateway. Zerodha customers can apply in Parag Milk Foods IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in Parag Milk Foods IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The Parag Milk Foods IPO opens on Wed, May 4, 2016 and closes on Wed, May 11, 2016.
Parag Milk Foods IPO lot size is 65, and the minimum amount required for application is ₹13,975.
You can apply in Parag Milk Foods IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for Parag Milk Foods IPO will be done on [.], and the allotted shares will be credited to your demat account by . Check the Parag Milk Foods IPO allotment status.
The Parag Milk Foods IPO listing date is on Thu, May 19, 2016.
