Parag Milk Foods IPO – Snapshot, Prospectus, Allotment, Listing details

Initial public offering (IPO) of Parag Milk Foods Limited is set to hit the capital market on May 5,2016  to raise Rs.750 crore. The company got approval for its IPO from capital markers regulator Securities and Exchange Board of India (Sebi) in December 2015. The company is making an offer for sale of up to 20,572,573 equity shares consisting of 14,286,449 equity shares held by Motilal Oswal and IDFC Private Equity.

The company plans to utilize Rs. 1476.80 million  for Expansion and Modernization Plan. Further, It will use Rs. 23.20 million in its Subsidiary for financing the capital expenditure requirements in relation to the expansion and modernization of the Bhagyalaxmi Dairy Farm.

Company profile

Parag  milk foods limited setforth its business in 1992 offering dairy based products in Pune, Maharashtra in the country . The company started to collect and distribute only Milk during the initial period of its business. Further, the firm expanded its brand of dairy based products including cheese, ghee, fresh milk, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages with a target of a wide range of consumer groups through several brands.  The company targets retail and institutional customers  for the product range  like shelf -life food and beverages products. It offers only cow’s milk made products.

Parag company operates in 29 districts across Maharashtra, Andhra Pradesh Karnataka and Tamilnadu  through over 3400 villages level milk collection centers.  It collects milk from milk farmers through chilling centers and bulk coolers. It’s average daily milk procurement for the financial years 2015 and 2014 was approximately 1.05 million litres and 0.77 million litres, respectively.

The firm has set its subsidiary Bhagyalaxmi Dairy Farm at Manchar in 2005 for the purpose to educate farmers about best practices of breeding, feeding, animal management and improving productivity.

Details of the company’s special products under different Brand name as follows:-

  1. Gowardhan includes mainly fresh milk in variants such as Vital, Gold, Fresh and T-Star for household consumption. It also offers curd, ghee, paneer, butter, milk powder, Whey proteins, Gulab Jamun mix, shrikhand under this brand.
  2. Go brand offers mainly cheese products and UHT Milk , Fresh milk Fruit Yogurts, Fresh Cream, Beverages for children and the youth generation.
  3. Pride of Cow is introduced to sell Premium cow milk for household customers.
  4. Topp Up brand offers Flavored milk in six flavours to youth generations.

Positive outlook of the Firm

  1. Well Established Brands Targeting a Range of Consumer Groups.
  2. Integrated Business Model that encompasses the entire value chain of the dairy based food and beverages business and includes a range of activities including manufacturing and processing to branding and distributing a wide variety of products.
  3. Diversified Product Portfolio like premium fresh and UHT milk, ghee, cheese, milk powders, whey proteins, dairy based beverages, curd, paneer, shrikhand, fruit yoghurts and fresh cream.
  4. Growing Pan-India Distribution Network
  5. Established Track Record of Growth and Financial Performance

Objects Of The Issue

1) To meet the capital expenditure requirements in relation to expansion and modernization of existing manufacturing facilities of the Company at Manchar and Palamaner.

2) To improve marketing and distribution infrastructure.

  1. Investment in Subsidiary for financing the capital expenditure requirements in relation to the expansion and modernization of the Bhagyalaxmi Dairy Farm;
    3. Partial repayment of the Working Capital Consortium Loan;

2) General Corporate Purposes.

Summary Of Issue: See Parag Milk Foods Prospectus here

Issue Open:- May 4, 2016 – May 6, 2016
Issue Type 100% Book Built Issue IPO
Issue Size (Shares) Equity Shares of Rs. 10
Issue Size in (Value) Rs. Crore
Face Value Rs. 10 Per Equity Share
Issue Price Rs. 220 to Rs. 227 Per Equity Share
Market lots 65 Shares
 Minimum Order Quantity 65 Shares
Listing At BSE, NSE

The Public offer includes

Particular Number Of Equity Shares
Fresh Issue of Equity Shares aggregating up to Rs. 300 crore
Offer For sale of Up to 20,572,573 Equity Shares

 Promoters Of the Company:-

  1. Devendra Shah:- He is 51 years old. He is a Promoter and the Executive Chairman of our company.
  2. Pritam Shah:- He is 45 years old. He is a Promoter and the Managing Director of the Company.
  3. Parag Shah:- He is 48 years old. He has an experience of 23 years in the dairy industry.


Particulars For the year/Period ended (Rs. in Million)
Financial Year 31-Mar-15 31-Mar-14 31-Mar-13 31-Mar-12 31-Mar-11
Total Equity & Liabilities 9239.32 8202.11 6901.43 6024.02 4744.89
Total Assets 9239.32 8202.11 6901.43 6024.02 4744.89
Total Revenue 14420.47 10882.78 9285.14 8967.97 6597.78
Total Expenses 13322.84 10059.44 8416.31 8175 6081.57
Profit After Tax (PAT) 294.72 145.87 220.48 151.54 6.27

Subscription Figures

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 Foods IPO Allotment Status:

Please keep looking for this space for Allotment details after couple of Issue closure. One can check the Allotment details with either PAN number or Application number or DP Client Id on the link given below.

All you need to follows are these steps.

  1. Go to Parag Milk Food IPO Allotment Status link here
  2. Select IPO as Parag Milk Foods
  3. Enter your PAN or Application No. or DP Client Id

It may take few seconds so be little patient. If you have not got the shares, please check the basis of allotment here on this link

Parag Milk Foods IPO Listing Date

We will update the date here once it is declared.

Lead Manager Details:-

1) Kotak Mahindra Capital Company Limited

1st Floor, 27 BKC, Plot No. 27, “G” Block,

Bandra Kurla Complex, Bandra (East),

Mumbai 400 051 Tel: (91 22) 4336 0000 Fax: (9122) 6713 2447

E-mail:       Investor Grievance ID:


Contact Person: Ganesh Rane

SEBI Registration No.: INM000008704

2) JM Financial Institutional Securities Limited

7th Floor, Cnergy, Appasaheb Marathe Marg Prabhadevi,

Mumbai 400 025 Tel: (91 22) 6630 3030 Fax: (91 22) 6630 3330

E-mail:       Investor Grievance E-mail: grievance.ibd@


Contact Person: Lakshmi Lakshmanan

SEBI Registration No.: INM000010361

3) IDFC Securities Limited

Naman Chambers, C-32, G Block, Bandra Kurla Complex Bandra (East),

Mumbai 400 051 Tel: (91 22) 6622 2600   Fax: (91 22) 6622 2501

Email:   Investor Grievance Email:


Contact Person: Akshay Bhandari

SEBI Registration No.: MB/INM000011336

4) Motilal Oswal Investment Advisors Private Limited

Motilal Oswal Tower, Rahimtullah Sayani Road,

opposite Parel ST Bus Depot,.Prabhadevi,

Mumbai 400 025 Tel: (91 22) 3980 4380   Fax: (91 22) 3980 4315

E-mail: parag.ipo@       Investor Grievance ID:


Contact Person: Subodh Mallya

SEBI Registration No.: INM000011005

Registrar To The Issue:-

Karvy Computershare Private Limited Karvy Selenium,

Tower B, Plot 31-32 Gachibowli,

Financial District Nanakramguda,

Hyderabad 500 032 Tel : (91 40) 6716 2222;   Fax: (91 40) 2343 1551;

Email:      Investor grievance;


Contact Person: M. Murali Krishna;

SEBI Registration No.: INR000000221


Registered Office Details:-

Flat No.1, Plot No. 19, Nav Rajasthan Society,

S.B. Road, Shivaji Nagar, Pune 411 016;

Corporate Office: 20th floor, Nirmal Building, Nariman Point, Mumbai 400 021

Contact Person: Rachana Sanganeria, Company Secretary and Compliance Officer;

Tel: (91 22) 4300 5555;   Fax: (91 22) 4300 5580;



Corporate Identity Number: U15204MH1992PLC070209

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