Mumbai: Prabhat Dairy Ltd, which sells milk and value-added milk products, will sell shares to the public for the first time on 28 August to raise close to Rs.500 crore, the company said on Monday.
The firm has priced its stock between Rs.140 and Rs.147 per share.
The initial public offer (IPO) comprises of a fresh issue of shares aggregating up to Rs.300 crore and an offer for sale of up to 14.7 million shares by the promoter group and other investors such as Rabo Equity Advisor’s India Agri Business Fund Ltd (IABF) and French development finance institution Proparco.
At the upper band of the issue, the IPO could see the selling shareholders garner almost Rs.216 crore collectively.
IABF had invested Rs.80 crore in Prabhat in 2012 while Proparco invested Rs.60 crore in 2013.
The bidding for the anchor investor portion of the offer will open on 27 August.
Edelweiss Financial Services Ltd, Macquarie Capital Services Pvt. Ltd and SBI Capital Markets Ltd are managing the issue.
The firm intends to use the IPO proceeds for part pre-payment of loans availed by it and its subsidiary and for capital expenditure.
Prabhat Dairy reported a revenue of Rs.874.8 crore in financial year 2014-15 as compared to Rs.779.9 crore a year ago. Net profit rose to Rs.3.8 crore in 2015 from Rs.2.5 crore a year ago.
Prabhat is an integrated milk and dairy products company catering to both institutional and retail customers. The company processes 1.5 million litres of milk per day at its two facilities in Maharashtra.
