Shares of Parag Milk Foods are trading higher after the announcement of its fundraising plans. The company aims to raise over Rs 300 crore via preferential allotment. CNBC-TV18 spoke with Devendra Shah, Chairman of the company to discuss this. Shah said with this amount, the company is replacing short-term working capital with long-term.
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“With this money, we will be saving Rs 20-25 crore of the interest cost. Basically, with this amount, we are replacing short-term working capital with long-term. Some of the money we will use for working capital,” he said.
As of now, the company has Rs 480 crore short-term loan working capital and around Rs 35 crore term loan, Shah said.
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On ‘Pride Of Cows’ business he said, “In ‘Pride Of Cows’ we did very well in last year during the pandemic situation also, revenues were around Rs 60-70 crore. We are expecting growth of 20-25 percent going forward.”
