Parag Milk Foods Ltd IPO Message Board (Page 24)

In this ipo,
cannot risk rs 50,
for getting rs 12
Poor demand,
Total sub @ 11am = 0.12
@3pm = 0.15

Looks like employees are confident, already 50% of their quota subscribed

they are pressurised by the management or loan is given to them to apply in IPO

Parag Milk Foods Ltd.,- 2nd Day Sub Fig., @ 3 P.M.:
QIB* - 00.13×
HNI - 00.09×
RET - 00.35×
EMP - 00.49
TOTAL - 00.15×
*EXCLUDING ANCHOR

Dear Eagleye Sir
Parag ka ab tak kitna subscribe hua h?
Application lagani chahiye ya nahi?

Today''s Sub Fig., @ 3 P.M.:
QIB* - 00.13×
HNI - 00.09×
RET - 00.35×
EMP - 00.49
TOTAL - 00.15×
*EXCLUDING ANCHOR

If retail not fully subscribed and suppose I apply at lower price band(220) then will I get allotment?

If the company fixes the lower price band.

yes

any new ipo in pipeline?

this ipo is high risk low return........... be care small investor...... no listing gain chance...

Parag ... "high risk low return" ... good point !!!

Is it possible to open the Demat account in my kid (minor). In case of Minor account, Does PAN Card is required for my kid to open the DEMAT account?

Thanks
suresh

yes you can open a demat account for a minor. but you will need his pan card and bank account before you can open a demat account.

Parag milk will be another quick heal for sure
Confirm

Parag GMP Rs.5/- (only Seller)

Dear Eagle Eye,

Can you tell us how can anyone judge company ,when its come to IPO market for Public Issue,so People be Aware of any Dangerous company ,for Coming public Money Away from them..!
And how you saying Parag Dairy se door raho ..?

I have never said ... Parag se door raho ... I have said ... I am NOT APPLYING

Parag milk is going to surprise everybody

Pleasent :)

Dear member u have remember prabhat diary ipo, there are no difference b/w paraq & prabhat

were should i get on line bid information ?? means how many time retail or Qib subcribed

You can visit on www.nseindia.com in which product then ipo then current ipo in which you get all exchange demand graph.

Listing gains only if non retail portion subscribe at least 20 times.

Fact : No logics no calculations works on any IPO.
It''s pure about hype and demand/supply game.
This is the only reason behind any hit IPO.(few exception r always there)

yes you are right i see people making calculations , and they land in trouble , it is with operators demand and supply

case study indigo , alkem labs , equitas , etc these are the few new ones going down blow listing gains or below the all time high to meet all time low

HAVE YOU OBSERVED ONE THING NO BROKER HAS SAID TO APPLY FOR LISTING GAINS. ALL ARE SAYING FOR LONG TERM . DONT KNOW HOW LONG DO THEY MEAN I NEED TO HOLD FOR 5 YEARS .
SECOND NO ANALYST HAS BEEN ABLE TO GIVE SOLID REASONS TO APPLY AS EVERYONE KNOW ITS AT PREMIUM P/E THAN IT PEERS AND NOT LEFT ANYTHING ON TABLE

SIMPLE CONCEPT IF A STOCK IS NOT DISCOUNTED THAN IT PEERS DONT APPLY

ALSO ITS HIGH DEBT AND TOUGH COMPETITION DOES NOT SUPPORT EITHER

SHOULD DEFINITELY BE A MISS FROM MY SIDE

Parag total subscription at 1st day end
QIB*-00.13
HNI-00.03
RET-00.15
EMP-00.03
Total 00.10
*excluding anchor

Equitas subscription day wise:
Day 1- 0.09
Day 2- 0.38
Day 3- 17.21

2nd Day Sub Fig., @ 3 P.M.:
QIB* - 00.13×
HNI - 00.09×
RET - 00.35×
EMP - 00.49
TOTAL - 00.15×
*EXCLUDING ANCHOR

@Dj & Eagle eye please correct me if i am wrong.
All analyst are comparing finacial ratios of parag with prabhat, hatson agro,kwality,nestle,brittania etc
But parag''s business model is different frm its peers, parag has almost 100%B2C business model with more than 25differents brands whereas on otherside prabhat is mainly into B2B business model no one knows brands manufactured by prabhat, no one knows hatsun agro products and hatsun agro is purely based in south india, kwality has main business of ice cream nothing to do with cheese n other milk products, brittania has limited business share of cheese in its wide range of products. Milk products dnt contribute much in Nestle''s top line and bottom line.
May be parag dnt give listing gains but for long term it may be good based upon its product portfolio and CAGR.

company''s strategy of expanding its value-added portfolio is exciting, it operates in a highly competitive industry with biggies such as Amul also growing its cheese and other value-added products. Parag will also need to continuously invest in advertising and brand-building activities going forward, which will keep a check on its profitability and return ratios in the near term.

Of the issue proceeds, Rs 300 crore will flow into the company''s books with the rest being offer for sale. Of this, one-third will be deployed towards part repayment of Parag''s debt, Rs 148 crore for expansion and modernisation of existing manufacturing facilities, Rs 2.3 crore for investment in Bhagyalaxmi Dairy farm and the rest for general corporate purposes. After the issue, the company''s debt-equity ratio will come down from 1.6 times to 0.5 times and add to overall earnings.

Expansion of its value-added portfolio (57 per cent of revenues), which comprises ghee, cheese/paneer, whey products and flavored milk, among others, is a key growth strategy for Parag. While its ghee products (under Govardhan brand) continue to witness healthy traction, the company believes cheese will be another fast-growing product going forward.

In addition to cheese sold in retail outlets, Parag is also focusing on growing the hotels, restaurants and canteen (HORECA) segment to boost cheese sales. It currently supplies cheese to prominent quick service restaurants such as Dominos, Pizza Hut and KFC. Notably, its peers such as Prabhat Dairy, too, are aggressively looking at growing their revenues from the HORECA segment. Parag provides whey powder (1.6 per cent of revenues) to larger players such as Nestle and believes that this product holds a lot of promise.

Strong distribution network, well recognized brands, fully integrated business model and rich management experience are some of Parag''s key strengths. Rising competition in all segments and entry of big conglomerates such as Mahindras, Godrej group and ITC in the dairy segment is a key downside risk. The management''s sound track record so far provides some comfort. In this backdrop, investors with a longer-term horizon may consider the issue at the lower price band.

Parag Milk Foods is an integrated dairy player with key brands such as Go, Govardhan, Topp Up and Pride of Cows. Focus on the healthier cow milk and value-added dairy products along with under-penetration of organized players are key positives and will aid the company''s growth over the next few years.

However, valuations of 27-28 times FY17 estimated earnings based on the equity capital after the initial public offering (IPO) — after discount of Rs 12 per share to retail/employees — appear to be on the higher side. Notably, this is after assuming a higher earnings growth rate of 50 per cent for FY17 considering its recent earnings growth track-record as well as potential savings on interest costs after the IPO.

Gowardhan brand liquid milk producer Parag Milk Foods Ltd has tied up with Germany based cheese marker Hochland SE for launching one of the largest European cheese brands "Almette" in India.

Introduced under a joint brand name "Go Almette", is a cream cheese produced in Germany made with pasteurized cow''s milk and is all natural with no preservatives, emulsifiers, thickeners, artificial colours or flavours. "Go Almette" cream is light, natural and fluffy, providing consumers an option to use it as a good food ingredient.

Parag Milk currently produces cheese under "Go" brand with a sizeable market share in the Rs $195 million cheese market in India. But, "Go Almette" brand has no competition in India as such products are not available. Parag Milk is planning to import "Go Almette" from Germany currently with future aim to set up a manufacturing plant in India.

"This launch is an attempt to continue our expansion in cheese market with a unique imported product. With this, we are broadening our portfolio of consumer health and nutrition based products," said Devendra Shah, Chairman, Parag Milk.

The company has launched two variants of cheese i.e. original and fine herbs; and in the process to launch more variants in near futures.

With European markets saturating, we were looking for expansion in the markets like India which is already a market leader in milk production. With strong distribution network, our partnership will go a long way," said Johannes Rogg, Division Manager (New Business Development), Hochland.

Under this co-branding arrangement, "Go Almette" is currently being produced by Hochland in Germany and Parag will be importing and marketing it. With a premium over existing cheese brands, Go Almette is available at Rs 150 per unit of 150 grams pack.

Parag will be focusing initially in metro and major cities to "taste the water" and will expand in other parts of the country later.

Interestingly, with two production facilities Hochland currently exist in Russian market where Parag is looking for its entry. Both partners may extend their partnership for Russian market as well.

"While we have not gone taken our engagements with Rochland beyond Go Almette, but we are sure that we are not going to compete in any market including Russia," said Shah. Parag posted annual sales of Rs 1440 crore, Rochland reported total turnover of euro 1.3 billion in 2014

So far I have negative view upon Parag Milk IPO...But today looking at superb anchor investor list i have developed some positive view about it....
I think we should consider this ipo till last day subscription figure and if QIB is 20x, then we should go for it for listing gains....