Parag Milk Makes Stellar Debut; Lists 11% Higher

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, May 19, 2016, 12:45 [IST]

Shares in Parag Milk, which came out with a public issue only recently, made a stellar debut on the bourses.

The stock was up 11 per cent, against an IPO issue price of Rs 215 and was last trading at Rs 239 on the National Stock Exchange.

Many brokerages had put a buy call on the stock, with a long term investment perspective. Most believe that the company can cash in on the fast growth in urban areas, while the business to business sale at the company would continue.

Parag Milk is a leading manufacturer of dairy products and has large clientele that largely include business to business channels.

The company's brands are largely popular across the States, particularly in Maharashtra. The company presently has a milk procurement that totals 20,000 litres per day.

Parag Milk boasts of brands like Gowardhan, Go, Topp Up & Pride of Cows. Its portfolio includes fresh milk, skim milk powder, ghee, whole milk powder, paneer, an array of processed and natural cheese, cheese spreads, butter, dahi, dairy whitener and gulab jamun mix under the brand names of 'Gowardhan' and 'Go' ,all made from 100 per cent fresh cow milk.

The company has a very dominant market share in the cheese business and some estimates put it next to Amul, in the cheese business. Shares of Parag Milk were last trading at Rs 244.

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