Parag Milk Foods raises Rs. 343 crore from anchor investors

The Company proposes to open on Wednesday, May 4, 2016, a Public Issue of its equity shares of face value of Rs. 10 each (the “Equity Shares”) for cash at a Price Band from Rs. 220 to Rs. 227 per Equity Share.

Parag Milk Foods Limited (the “Company” or “Issuer”) has finalized the allocation of 1,51,03,935 equity shares to anchor investors at a price of Rs. 227 per equity share aggregating to Rs. 342.86 crore to anchor investors. Anchor Investors include: Nomura, Morgan Stanley, Abu Dhabi Investment Authority, Tata MF, Neuberger Berman, Quantum, etc.

Abu Dhabi Investment Authority – Behave – 1423825 (9.43%), Alberta Teachers Retirement Fund Board – 316495 (2.1%), Copthall Mauritius Investment Limited – 913516 (6.05%), Government Pension Fund Global – 1421095 (9.41%), Hostplus Pooled Superannuation Trust Neuberger Australia PTY Limited – 330896 (2.19%), Indus India Fund (Marutius) Ltd. – 220300 (1.46%), Jana Emerging Markets Share Trust – 240972 (1.6%), Morgan Stanley Mauritius Company Ltd. – 1404195 (9.3%), Neuberger Berman Emerging Market Strategy – 305679 (2.02%), Neuberger Berman Emerging Markets Equity Fund – 561055 (3.71%), Nomura India Investment Fund Mother Fund – 2202655 (14.58%), Quantum (M) Limited – 844480 (5.59%), SEI Global Master Fund PLC A/C The SEI Emerging Markets Equity Fund – 273357 (1.81%), SEI Institutional International Trust Emerging Markets Equity Fund A/C SEI Institutional International Trust Emerging Markets Equity Fund managed by Neuberger Berman Management LLC – 460375 (3.05%),The Honey Well International Inc. Master Retirement Trust – 220300 (1.46%), The Nomura Trust & Banking Co. Ltd. As the Trustee of Nomura India Stock Mother Fund – 440570 (2.92%), Tata Balanced Fund – 1921270 (12.72%), Tata Equity Opportunities Fund – 507065 (3.36%), Tata India Consumer Fund – 28015 (0.19%), Tata Offshore India Opportunities Scheme – 694265 (4.6%), Tata Trustee Co Ltd. A/C Tata Mutual Fund A/c Tata Midcap Growth Fund – 240500 (1.59%), Tata Trustee Co Ltd. A/C Tata Mutual Fund – Tata India Tax Savings Fund – 133055 (0.88%)  

 The Company proposes to open on Wednesday, May 4, 2016, a Public Issue of its equity shares of face value of Rs. 10 each (the “Equity Shares”) for cash at a Price Band from Rs. 220 to Rs. 227 per Equity Share (including a share premium per Equity Share) consisting of a fresh issue of Equity Shares aggregating up to Rs. 3,000 million (“Fresh Issue”) and an offer for sale of up to 20,572,573 Equity Shares comprising of 14,286,449 Equity Shares by the Investor Selling Shareholders; and 6,286,124 Equity Shares by Other Selling Shareholders (the “Offer for Sale” and the Offer for Sale and the Fresh Issue are collectively referred to as the “Issue”). The Issue includes a reservation of 300,000 Equity Shares for subscription by Eligible Employees (the “Employee Reservation Portion”). The Issue less the Employee Reservation Portion is referred to herein as the Net Issue.

 Bids can be made for a minimum of 65 Equity Shares and in multiples of 65 Equity Shares thereafter. The Company and the Investor Selling Shareholders may, in consultation with the Book Running Lead Managers (the “BRLMs”), consider participation by Anchor Investors in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the “SEBI Regulations”). The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date. The Bid/Issue Period will close on Friday, May 6, 2016.

 The Equity Shares offered through the Issue are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) (collectively, “Stock Exchanges”). For the Issue, BSE shall be the Designated Stock Exchange.

The BRLMs to the Issue are Kotak Mahindra Capital Company Limited, JM Financial Institutional Securities Limited, IDFC Securities Limited and Motilal Oswal Investment Advisors Private Limited. 

 In compliance with the proviso to Regulation 21A(1) of the SEBI (Merchant Bankers) Regulations, 1992, read with proviso to Regulation 5(3) of the SEBI Regulations, IDFC Securities Limited and Motilal Oswal Investment Advisors Private Limited will be involved only in marketing of the Issue.

 The Issue is being made through the Book Building Process, in compliance with Regulation 26(2) of the SEBI Regulations, wherein at least 75% of the Net Issue shall be Allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the Company in consultation with the Investor Selling Shareholders and the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 75% of the Net Issue cannot be allotted to QIBs, then the entire application money shall be refunded forthwith. Further, not more than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price. Further, 300,000 Equity Shares will be available for allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received from them at or above Issue Price after the Employee Discount. The Company in consultation with the Investor Selling Shareholders and the BRLMs will offer a discount of up to Rs. 12 per Equity Share on the Issue Price to Eligible Employees and a discount of up to Rs. 12 per Equity Share on the Issue Price to the Retail Individual Bidders. Under-subscription, if any, in the Employee Reservation Portion will be added back to the Net Issue portion. All potential investors, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), to participate in the Issue.