Parag Milk Foods intends to generate Rs 316 crore

On April 5 Parag Foods announced its plan to generate Rs 316 crore through IFC and Sixth Sense Venture Advisors.

The process involves money generated by preferential allotment and foreign currency convertible bonds.

The investment made by IFC is Rs 155 crore whereas Sixth Sense Venture Advisors will put Rs 50 crore. Also, promoters and kinfolk invest the remaining amount of Rs 111 crore.

The company added, the portion fixed for promoter stake is 46 percent.

Also, an urgent meeting called the extraordinary general meeting will take place on April 26, 2021.

 The International Finance Corporation will invest money in the form of a preferential issue and FFCB subscription. The amount raised from IFC is Rs 155 crore. This is in addition to the earlier subscription of a non-convertible debenture of Rs 150 crore.

On the other hand, Sixth Sense Venture Advisors will invest through preferential allotment of 45, 04,505 equity shares. The face value per share is Rs 10 with a price of Rs 111 each. The total money invested amounts to Rs 50 crore.

The regulatory filings include the preferential allotment to Devendra Prakash Shah and Netra Pritam Shah.

As per the company, the money generated from FCCB will fulfill the requirement of capital needs and ease the CF.

Furthermore, the money raised through preferential shares and warrants will improve the growth and meet the working capital requirements. Also, it would decrease the current liabilities of the company.

Consequently, the company will gain the opportunity to grow further and enhance its balance sheet.

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