Mumbai: Prabhat Dairy Limited (the “Company”) plans to enter the capital market with an initial public offering of equity shares of face value of Rs. 10 each (the “Equity Shares”). The Issue comprises of a fresh issue aggregating up to Rs. 3,000 million and an offer for sale of up to 14,706,000 Equity Shares comprising of up to 3,151,000 Equity Shares by Nirmal Family Trust (Promoter); up to 6,580,000 Equity Shares by the India Agri Business Fund Ltd.; up to 23,000 Equity Shares by The Real Trust; and up to 4,952,000 Equity Shares by Societe de Promotion et de Participation Pour La Cooperation Economique  (the “Issue”). The price band has been fixed from Rs. 140 to Rs. 147 per Equity Share of Face Value of Rs. 10 each. A discount of Rs. 5 per Equity Share is being offered to Retail Individual Investors. The Issue opens on Friday August 28, 2015 and closes on Tuesday, September 1, 2015.

The Company and the Selling Shareholders may, in consultation with the Lead Managers, may consider participation by Anchor Investors in accordance with the SEBI Regulations. The Anchor Investor shall bid one Working Day prior to the Bid / Issue Opening Date, being August 27, 2015. Bids can be made for a minimum of 102 Equity Shares and in multiples of 102 Equity Shares thereafter.

The Equity Shares are proposed to be listed on BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).

The Global Co-ordinators and Book Running Lead Managers (“GC-BRLMs”) to the Issue are Edelweiss Financial Services Limited and Macquarie Capital Securities (India) Private Limited. The Book Running Lead Manager “”BRLM”) to the Issue is SBI Capital Markets Limited (the BRLM together with the GC-BRLMs, the “Lead Managers”).

In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended, this is an Issue for at least 25% of the post-Issue paid-up equity share capital of the Company. The Issue is being made through the Book Building Process, in compliance with Regulation 26(1) of SEBI Regulations, wherein 50% of the Issue shall be available for allocation on a proportionate basis to QIBs, provided that the Company and the Selling Shareholders in consultation with the Lead Managers may allocate up to 60% of the QIB Category to Anchor Investors on a discretionary basis. 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price.

Source : Sachin Murdeshwar