New Delhi: Dairy firm Parag Milk Foods has received capital market regulator Sebi's approval to raise an estimated Rs 1,200 crore through an initial public offering.
The public issue of Parag consists of fresh issue of equity shares worth Rs 325 crore and an offer for sale of up to 19,850,000 equity shares.
The proceeds of the issue will be utilised for expansion and modernisation as well as investment in its subsidiary. The firm, which had filed draft red herring prospectus (DRHP) with Sebi on September 30, seeking permission for an IPO, has obtained clearance from the capital markets regulator, according to sources.
The company is expected to mop up an estimated Rs 1,200 crore through the issue, sources said.
The issue is being managed by Kotak Mahindra Capital, JM Financial Institutional Securities, IDFC Securities and Motilal Oswal Investment Advisors.
The equity shares offered through the issue are proposed to be listed on BSE and NSE.
Maharashtra-based Parag, which begun its operations in 1992, is now one of the leading manufacturers and marketers of dairy-based branded foods in the country.
For the fiscal 2015, the company's total revenue was Rs 1,442 crore and profit after tax was Rs 29.5 crore.
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