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Gowardhan brand owner Parag Milk Foods mulls over listing

By Pankhuri Goel | Vjmedia Works | July 22, 2014

Parag has grown to be one of the largest private dairies in the country with a current turnover of Rs 1,500 crore a year

Maharashtra-based private dairy company and Gowardhan brand owner Parag Milk Foods, promoted by Devendra Shah, is mulling an Initial Public Offering (IPO) in a few months, to offer exit to investors who own 30 per cent stake.

Chairman and Managing Director Shah said it would take five to six months to complete the process. Set up in 1992, Parag has grown to be one of the largest private dairies in the country, with a current turnover of Rs 1,500 crore a year. It has two plants with a capacity of two million litres a day. One plant is at Manchar, 60 km from Pune. The other in Palamaner, Andhra Pradesh. To fund its expansion, Parag had raised funds from private equity firms IDFC Alternatives and Motilal Oswal Venture Capital Advisors and its associates.

Vishal Tulsyan, chief executive and managing director of Motilal Oswal Private Equity, said, "We have less than 15 per cent stake in Parag. The company has grown well in three years." He said Parag was working towards an IPO and the investors would look to exit.

While Motilal Oswal had invested as early as 2008, IDFC had picked equity for Rs 155 crore in September 2012. Shah said both the investors has less than 30 per cent stake, while the promoters held 70 per cent. The company is looking at a valuation of Rs 2,000 to Rs 2,500 crore.

The International Finance Corporation (IFC) had given a $15-million loan to Parag in end-2013. Shah said IFC had not picked up equity.
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