Stock Market

Parag Milk Foods surges 15%, closes near day’s high on debut

Parag Milk Foods surges 15%, closes near days high on debut

Chillicious Team

Buying interest helped Parag Milk Foods close sharply higher on Thursday, the day one on exchanges. The stock ended near day’s high at Rs 247 on National Stock Exchange, up 14.88 percent over issue price of Rs 215.

It started off trade with marginal gain of 1 percent at Rs 217.50 but quickly managed to climb higher, gaining over 16 percent to touch an intraday high of Rs 249.70 apiece.

The Maharashtra-based dairy firm had extended its public offer and revised price band to Rs 215-227 per share from Rs 220-227. The issue was opened during May 4-11.

Parag Milk will use its issue proceeds (Rs 760-crore) for expansion & modernisation of existing manufacturing facilities at Manchar & Palamaner, investment in subsidiary and partial repayment of the working capital consortium loan.

The company, which began operations in 1992, 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 (market share of 42 percent).