Parag Milk Foods IPO – 23% Subscription on day 2

Dairy firm Parag Milk foods Limited IPO opened as on 4th May 2016. In a bid to raise 750cr, they have received 10% subscription as on day 1 and 23% till day 2. The retail subscription has reached 50% of the quota however QIB is still lying at 13% of the total QIB quota. The NII figures has jumped to 22% on day 2 from 3% on day 1.

The Subscription figures till date are as follows

Number of Times Issue is Subscribed (BSE + NSE)
As on Date & Time QIB NII RII Employee Total
Shares Offered / Reserved 10,388,303 5,098,447 3,398,964 300,000 19,185,714
Day 1 – May 4, 2016 17:00 IST 13% 3% 15% 3% 10%
Day 2 – May 5, 2016 17:00 IST 13% 22% 50% 73% 23%

Parag Milk will allot at least 75% of the shares on a proportionate basis to qualified institutional buyers, 15% to non-institutional investors, comprising high net-worth individuals, and 10% to retail investors.

The firm received nearly Rs.343 crore from anchor investors ahead of its IPO as on 3rd May 2016. The company allotted 15.1 million shares to 17 anchor investors at Rs.227 apiece, the upper end of the Rs.220-227 price band fixed for the IPO.

All retail investors and eligible employee of the company can get a discount of Rs. 12 per equity shares.

The share of company traded at a premium Rs. 5 to 15 per share in grey market as on 4th May 2016.

Based on the price band set by the firm, the total issue size will range between Rs.752.6 crore and Rs.767.6 crore, of which the firm’s promoters and private equity (PE) investors will collectively garner upward of Rs.450 crore by selling 20.57 million shares.

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