Parag Milk Foods Ltd raises Rs. 131 Crores through preferential allotment

A leading dairy-FMCG company in India, Parag Milk Foods Limited, announced that it has raised a total of ~Rs. 131 crores through preferential allotment from marquee investors and promoters. Investors have put in around ~Rs. ~113 crores, demonstrating their trust in the company's ethos, values as well as a promising growth strategy. In addition, the promoters will also invest ~Rs.18.75 crores.

We have delivered a robust Q1 performance with a 57.6% Y-o-Y increase in revenue; surpassing our internal growth targets both in terms of volume and value. The overall growth is broad-based and driven by strong traction across all our verticals. As we enter into the festive season, the demand momentum for dairy products continues to accelerate and all our brands are witnessing a surge in the overall offtake. This fund raise comes at an opportune time to enable us to meet our expanded working capital need to capitalize on demand potential and pave the way for a profitable business ahead.

Commenting on the same, Mr. Devendra Shah, Chairman said, "We are delighted by the trust and belief shown by the marquee investors in the business and are thankful to our existing shareholders for their continued support. The current proceeds of preferential shares and warrants would be utilized to fund our long-term capital requirements and to enhance the working capital needs. This will aid in further strengthening our balance sheet and drive the company for accelerated growth ahead.

We would continue to embark on our journey of innovation by delighting our consumers with high-quality nutritious products, enhancing our distribution network to achieve sustainable and profitable business growth and create longterm value for our stakeholders".

Shares of Parag Milk Foods Limited was last trading in BSE at Rs. 102.70 as compared to the previous close of Rs. 100.65. The total number of shares traded during the day was 129998 in over 2004 trades.

The stock hit an intraday high of Rs. 104.30 and intraday low of 101.15. The net turnover during the day was Rs. 13355455.00.

Source : Equity Bulls

Keywords

ParagMilkFoodsLimited INE883N01014 539889 PARAGMILK PackagedFoods