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Ahmednagar-based Prabhat Dairy Pvt Ltd's initial public offer (IPO), which opened for subscription on Friday (August 28), barely managed to get more investors on board with subscription of just 20 per cent of the issue at the end of day 2, bulk of it coming from qualified institutional buyers (QIBs), as per the data available with the stock exchanges.

The public issue was covered around 15 per cent on day 1 after it opted out of bringing anchor investors.

With one day to go, it has a long way to sail through even as it is not unusual for IPOs to get full subscription on the last day.

On Monday, QIBs subscribed 37 per cent of the portion reserved for the segment. While non-institutional investors (HNIs and corporates) did not bid at all, retail investors subscribed just over 5 per cent of the portion reserved for them.

Prabhat Dairy, an integrated milk and dairy products company catering to institutional as well as retail customers, has offered 36.4 million equity shares to raise up to Rs 300 crore (around $48 million) through a fresh issue besides an offer sale that would give around Rs 235 crore to the selling shareholders.

Offer for sale includes sale of up to 3.15 million equity shares by Nirmal Family Trust (promoters); up to 6.58 million equity shares by The India Agri Business Fund Ltd (managed by Rabo Equity Advisors or Rabo India PE); up to 23,000 by The Real Trust;  and up to 4.95 million shares by French DFI Proparco.

The issue will close on September 1, 2015.

Edelweiss Financial Services, Macquarie Capital Securities and SBI Capital Markets are the book running lead managers to the issue.

Incorporated in 1988, Prabhat Dairy markets dairy products under Prabhat, Flava and Milk Magic brands. It is a regional player with operations mainly in Maharashtra.

As of March 15, 2015, the company had an aggregate milk processing capacity of 1.5 million litres per day.

To read more about the IPO, click here.

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