Ahmednagar-based Prabhat Dairy Pvt Ltd's initial public offer (IPO), which opened for subscription on Friday (August 28), got off to a slow start with around 15 per cent of the issue covered at the end of day 1, bulk of it coming from institutional investors, as per the data available with the stock exchanges.
The company did not opt for any anchor investors.
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 company has fixed a price band at Rs 140 to Rs 147 a share. The issue will close on September 1, 2015.
The company received approval from the capital markets regulator Securities and Exchange Board of India (SEBI) for its IPO in June.
Of the total proceeds of the fresh issue, around Rs 196 crore would be used for part pre-payment of loans availed by the company and its wholly owned subsidiary, SAIPL; around Rs 35 crore would be used to meet capital expenditure and the rest for general corporate purposes.
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 like most private peer group firms.
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.