Parag Milk makes strong debut; shares up 15%

Making a strong debut in the stock market, shares of dairy firm Parag Milk Foods on Thursday rose nearly 15% in its debut trade on Thursday from its issue price of Rs 215.

The stock which listed with a mild gain of 0.32% at Rs 215.70, later gathered momentum and finally ended the day at Rs 247.80, up 14.88% on BSE.

Intra-day, it zoomed as much as 16.27% to Rs 250. At NSE, shares jumped 14.88% to close at Rs 247. The company commanded a market valuation of Rs 2,084.36 crore at the end of the first day of its trade.

On volume front, 44.28 lakh shares of the company were traded at BSE and over one crore shares changed hands at NSE.

The company's Rs 760-crore initial public offering (IPO), which had to be extended by three days, was oversubscribed 1.83 times on the final day of the offer that ended on May 11. The issue had opened on May 4.

Parag Milk had also revised price band to Rs 215-227 per share midway during its public offer. The price band was previously fixed at Rs 220-227. The book running lead managers to the issue were Kotak Mahindra, JM Financial, IDFC Securities and Motilal Oswal.

Maharashtra-based Parag Milk, which began operations in 1992, is a leading manufacturer and marketer of dairy-based branded foods in the country.