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Prabhat Dairy IPO opens on 28 August 2015

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Capital Market
Last Updated : Aug 26 2015 | 6:48 PM IST

IPO price band fixed at Rs 140 to Rs 147 per share

Prabhat Dairy is coming up with an initial public offer (IPO), which includes fresh issue of equity shares aggregating up to Rs 300 crore and an offer for sale of 1.47 crore shares from existing shareholders. Among the selling shareholders, Nirmal Family Trust has put on block 31.51 lakh equity shares, India Agri Business Fund is offering 65.80 lakh shares, Societe De Promotion Et De Participation Pour La Cooperation Economique is selling 49.52 lakh equity shares and REAL Trust is selling 23,000 shares. The IPO opens for bidding on Friday, 28 August 2015, and closes on Tuesday, 1 September 2015. The price band for the IPO has been fixed at Rs 140 to Rs 147 per share. There is a discount of Rs 5 per share for retail investors.

Promoted by Sarangdhar Ramchandra Nirmal, Vivek Sarangdhar Nirmal and Nirmal Family Trust, Prabhat Dairy is an integrated milk and dairy products company in India, catering to institutional as well as retail customers. The company produces and sells a range of pasteurized milk and other dairy products to retail customers under the Prabhat, Flava and Milk Magic brands.

The company intends to utilise the IPO proceeds to partly pre-pay loans availed by company and its wholly owned subsidiary, Sunfresh Agro Industries (SAIPL), amounting to Rs 185 crore. The company also intends to utilise the IPO proceeds to meet capital expenditure of Rs 35.06 crore by wholly owned subsidiary SAIPL.

On consolidated basis, Prabhat Dairy's net profit rose 1.29% to Rs 21.05 crore on 16.81% growth in net sales to Rs 1000.77 crore in the year ended 31 March 2015 (FY 2015) over the year ended 31 March 2014 (FY 2014).

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First Published: Aug 26 2015 | 5:58 PM IST

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