Parag Milk Foods Ltd, a leading dairy FMCG company in India announced its plans to raise a total of Rs 316 crore by way of preferential issue of equity shares, foreign currency convertible bonds (FCCB) and the issue of convertible warrants.
International Finance Corporation (IFC) is proposing an investment of up to Rs 155 crore by way of subscription to preferential issue of equity shares and subscription of FCCBs in addition to proposed subscription to NCDs of Rs150 crore committed in December. The proposed investment includes a preferential allotment of 67,56,757 equity shares of face value Rs 10 each at a price of Rs. 111 (including a premium of Rs. 101 per Equity Share) for a total consideration of Rs. 75 crores.
Additionally, as part of the proposed investment, IFC would be offered to subscribe Foreign Currency Convertible Bonds (FCCBs) aggregating up to US$ 11 million by private placement to be converted at, subject to applicable laws, a conversion price of Rs. 145 per equity share with a 5 year maturity to redemption.
Sixth Sense Venture Advisors LLP, which is India’s first domestic, consumer-centric venture fund, also showed confidence in the company and has proposed an investment of Rs 50 crore by way of preferential allotment of 45,04,505 equity shares of face value Rs 10 each at a price of Rs 111 each (including a premium of Rs 101 per equity share). The promoters will further invest Rs 111 crore that includes preferential allotment of 50,00,000 convertible share warrants in the name of Devendra Prakash Shah along with 50,00,000 to Netra Pritam Shah, convertible into equity shares with a face value of Rs 10 each fully paid up, on a preferential basis, at a price of Rs 111 (including premium of Rs 101) per share warrant. With this, the promoter holding in the company would be maintained at 46 per cent.