Prabhat Dairy to list on 21 September

Prabhat Dairy to list on 21 September

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Shares of Prabhat Dairy will list on NSE and BSE on 21 September. According to a statement on BSE, the shares of the integrated milk and dairy products company will be listed in Group ‘B’ of securities. Initially, the IPO was priced in the range of INR140-147 per share but the price band was revised down to INR INR115 – 126 per equity share following poor subscription. Final allotment price has been set at INR115 per share while Retail Individual Investors have received  a discount of INR5 per equity share.Prabhat Dairy

Prabhat Dairy is one of the three IPO’s to provide such discount for current year and second to fail to come out in original issue period. Prior to Prabhat Dairy, Adlabs Entertainment Ltd – a theme parks operator – had also extended its issue period and cut issue price.

Read Also: Prabhat Dairy IPO reaches finish line after existing investors pare sale

The Maharashtra-based dairy products company offered 36.4 million equity shares and raised INR300 crore through fresh issue of shares. The objective for doing so is to pay back loans, meet capital expenditure and general corporate purpose.  Out of INR300 crore, around INR185 is reserved to be spent for pre-payment of loans. INR35 crore is deemed to be used towards construction of a 3 MW cogeneration captive power plant in order to boost manufacturing process. Rabobank and Proparco were looking to substantially reduce their shareholding in the company through the IPO; however, poor response forced them to roll back the offer for sale.

Read Also: Prabhat Dairy IPO review: Milk is already skimmed

The promoters of the company are Vivek Sarangdhar Nirmal, Sarangdhar Ramchandra Nirmal and Nirmal Family Trust. Incorporated in 1988, business has grown considerably and consistently since last four years. The company caters both institutional and retail customers. It markets dairy products with Flava, Prabhat and Milk Magic categories.

 

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