Integrated milk and dairy products maker Prabhat Dairy Ltd has announced its public offer, which will be open between August 28 and September 1.
The price band has been fixed at Rs 140 to Rs 147. The company is offering a five per cent discount on the issue price to retail individual investors. The offer consists of a fresh issue of Rs 300 crore and an offer for sale component of 1.47 crore shares, which will amount to Rs 206 crore at the lower end of the price band and Rs 216 crore at the upper end.
The company intends to use Rs 185 crore from the issue for part pre-payment of loans and Rs 35 crore for capital expenditure.
The offer for sale component consists of 31.51 lakh shares put on the block by promoter group Nirmal Family Trust; up to 65.80 lakh shares by the India Agri Business Fund Ltd; 23,000 shares by The Real Trust; and up to 49.52 shares by Societe de Promotion et de Participation Pour La Cooperation Economique.
The minimum bid lot is 102 shares and thereafter in multiples of 102. The shares are proposed to be listed on BSE and the NSE.
Edelweiss Financial Services, Macquarie Capital Securities and SBI Capital Markets are the book running lead managers to the issue.
Prabhat Dairy has large, automated production facilities at Shrirampur (Ahmednagar, Gujarat) and at Navi Mumbai, with an aggregate milk processing capacity of 1.5 million litres a day as on June 30, 2015. The company produces fresh, dry, frozen, cultured and fermented dairy products. It sells products under retail consumer brands (Prabhat, Flava and Milk Magic) as well as ingredient products or as co-manufactured products to a number of institutional and multinational companies, such as Mondelez India Foods, Abbott Healthcare, Britannia Industries, Mother Dairy Fruit & Vegetable and Heritage Foods.