Parag Milk Foods raises Rs131 crore fund via preferential allotment; Stock surges 1.5%

25 Aug 2022 , 09:16 AM

A leading dairy-FMCG company in India, Parag Milk Foods Limited has announced that it has raised a total of ~Rs131 crore through preferential allotment from marquee investors and promoters. 

Investors have put in around ~Rs113 crore, demonstrating their trust in the company’s ethos, values as well as a promising growth strategy. In addition, the promoters will also invest ~Rs18.75 crore.

“The Company has reported a strong Q1FY23 performance with a growth of 57.6% yoy in revenue. The overall growth is broad-based on account of strong momentum across all our verticals. Ahead of festive season, the demand momentum for dairy products continues to accelerate and all our brands are witnessing growth 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”, the company said.

Commenting on the same, 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.”

On Thursday early morning trade, Parag Milk Foods Ltd is currently trading at Rs103.45 per share up by Rs1.65 or 1.62% from its previous closing of Rs101.80 per share on the BSE.

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