Stock Market

Parag Milk IPO subscribed 23% on second day

Parag Milk IPO subscribed 23% on second day

The Rs 760-crore IPO of dairy firm Parag Milk Foods was subscribed 23 per cent on the second day of the issue today.


The offer received bids for 43,67,935 shares against the total issue size of 1,91,85,714 shares, as per data available with the NSE till 1700 hrs.


The portion set aside for qualified institutional buyers (QIBs) was subscribed 13 per cent and non institutional investors received 22 per cent subscription.


Retail investors category was subscribed 50 per cent. The issue will close tomorrow.


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.


Parag Milk has already got commitments for shares worth Rs 343 crore from anchor investors.


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


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.