Parag Milk Foods raises Rs 131 crore via preferential allotment

Parag Milk Foods Ltd on Wednesday announced that it has raised a total of Rs 131 crore through preferential allotment from marquee investors and promoters.

In a regulatory filing, the company said investors have invested Rs 113 crore and promoters about Rs 18.75 crore looking at the promising growth strategy.

"The current proceeds of preferential shares and warrants would be utilised to fund our long-term capital requirements and to enhance the working capital needs," Parag Milk Foods chairman Devendra Shah said.

This will aid in further strengthening the company’s balance sheet and drive the company for accelerated growth ahead, he said.

According to the company, this fund raise comes at an opportune time to enable the company to meet its expanded working capital need to capitalise on demand potential and pave the way for a profitable business ahead.

Ahead of festive season, the demand momentum for dairy products continues to accelerate and all its brands are witnessing a surge in the overall offtake, it said.

The company has posted a robust Q1 performance with 57.6 percent year-on-year increase in revenue; surpassing the internal growth targets both in terms of volume and value, it added.

Parag Milk Foods, which sells under the brand name "Pride of Cows", has its own manufacturing facilities at Manchar in Maharashtra, Palamaner in Andhra Pradesh and Sonipat in Haryana.