Parag Milk Foods Limited Public Issue

Parag Milk Foods Limited will open its Public Issue of its equity shares of face value of Rs. 10 each for cash at a Price Band from Rs. 220 to Rs. 227 per Equity Share of a fresh issue of Equity Shares aggregating up to Rs. 3,000 million and an offer for sale of up to 20,572,573 Equity Shares comprising of 14,286,449 Equity Shares by the Investor Selling Shareholders; and 6,286,124 Equity Shares by Other Selling Shareholders. Bids can be made for a minimum of 65 Equity Shares and in multiples of 65 Equity Shares thereafter. The Issue includes a reservation of 300,000 Equity Shares for subscription by Eligible Employees. Listing will be on BSE and NSE.

The Maharashtra based company was founded in 1992 with its flagship brand ‘Goverdhan’. Located in a lush green village called Manchar in Maharashtra (60 km from Pune), it has the largest cow farm in India as well as Asia’s largest cheese plant. It is one of the biggest manufacturers of dairy based branded foods having a Pan India presence with over 300,000 retail outlets and exporting cheese and ghee to the USA, Middle East, Africa and South-east Asia. The company has a CAGR of about 21%.

It is one of India’s largest private dairies, with an output capacity of 1,000,000 liters per day. It is involved 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 and  Parag Milk Foods procures its milk from 29 districts across Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu, through over 3,400 village level milk collection centres.

  1. 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.
  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.

The BRLMs to the Issue are Kotak Mahindra Capital Company Limited, JM Financial Institutional Securities Limited, IDFC Securities Limited and Motilal Oswal Investment Advisors Private Limited.

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