Prabhat Dairy's IPO closes successfully

The initial public offering (IPO) of Prabhat Dairy has managed to sail through despite weakness in the secondary market.
"Prabhat Dairy has successfully concluded the IPO comprising of a fresh issue aggregating up to Rs 300 crore and an offer for sale (OFS) of up to 14,706,000 equity shares," the company said in a statement.
The company has collected more than Rs 300 crore through fresh issue portion.
As per data available with NSE till 1700 hrs, the issue saw bids of 3.16 crore shares against the total 4.12 crore equities on offer translating a subscription of 77 per cent.

The qualified institutional buyers (QIBs) bid for 76 per cent and retail investors applied for just 26 per cent of the portion reserved for them. However, portion reserved for HNIs and corporates segment was subscribed for 142 per cent.
The move comes amid a steep fall of 562.88 points, or 2.18 per cent in the BSE's benchmark Sensex.

On September 1, the final day of the original issue closure period, the company had lowered the price band to Rs 115-126, from Rs 140-147.
Besides, the IPO was extended by three days to September 4 as the issue failed to generate interest among investors on its final day of offering. It also offered a discount of Rs 5 a share to retail investors.

The proceeds from the fresh issue would be used for repayment of loans, capital expenditure and general corporate purpose.