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Parag Milk Food aims to raise Rs 300 crore via preferential allotment

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.

Also read : IFC to fund Parag’s milk working cap and expansion plans

“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.

Also Read : Parag Milk Foods sets up lactose manufacturing facility

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.”

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