PRABHAT DAIRY LIMITED
PRESS RELEASE (NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION OUTSIDE INDIA OR IN THE UNITED STATES )
Prabhat Dairy Limited Public Issue
Revised Price Band: Rs. 115 to Rs. 126 per Equity Share
Discount of Rs. 5 per Equity Share is being offered to Retail Individual Bidders
BID/ISSUE CLOSES ON FRIDAY, SEPTEMBER 4, 2015
Mumbai, September 1, 2015: Prabhat Dairy Limited (the “Company” or the “Issuer”) is proposing to
list its equity shares of face value of Rs. 10 each (the “Equity Shares”) on BSE Limited and the National
Stock Exchange of India Limited (collectively, the “Stock Exchanges”) through an initial public offer of the
Equity Shares. The initial public offer 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 (the “Issue”). The Company had filed the Red Herring
Prospectus dated August 17, 2015 for the Issue (the “RHP”) with the Registrar of Companies, Pune,
Maharashtra on August 17, 2015 and the Bid / Issue Period for participating in the Issue was August 28, 2015
to September 1, 2015. 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 to the Issue is SBI Capital Markets Limited (the “BRLM”, and together with the
GC-BRLMs, the “Lead Managers”).
The price band for the Issue was determined as Rs. 140 to Rs. 147 per Equity Share. The Company and the
Selling Shareholders, in consultation with the Lead Managers, have decided to revise the price band for the
Issue. The revised price band shall be Rs. 115 to Rs. 126 per Equity Share. The discount on the issue price to
Retail Individual bidders (“Retail Discount”) will remain at Rs. 5 per Equity Share. The minimum Bid Lot will
remain at 102 Equity Shares and in multiples of 102 Equity Shares thereafter. Please note that, in the event
that the Bids are submitted by the Bidders at any price, including the Cut-Off Price, in the original Price Band
i.e. Rs. 140 to Rs. 147, the Bids will be treated as Bids at the higher end of the revised Price Band i.e. Rs. 126,
unless the Bids are revised by the Bidders. Pursuant to the revision in the price band, the Bid / Issue Period
has been extended by three working days and consequently, the Bid/ Issue Closing Date shall be Friday,
September 4, 2015. For further details in relation to the revision of price band, please refer to the websites
of the Stock Exchanges at www.bseindia.com and www.nseindia.com and the websites of the Lead Managers
at www.edelweissfin.com, http://www.macquarie.com/in/about/disclosures/india-list-of-offer-documents and
www.sbicaps.com.
In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended, (“SCRR”) 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 (“QIB Category”). 5% of
the QIB Category 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,
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.
About Prabhat Dairy Limited
The Company is an integrated milk and dairy products company in India catering to institutional as well as
retail customers. The Company has established large, automated production facilities with advanced
equipment at Shrirampur (Ahmednagar) and at Navi Mumbai, with an aggregate milk processing capacity of
1.5 million litres per day as of June 30, 2015. The Company produces fresh, dry, frozen, cultured and
fermented dairy products, including pasteurized milk, flavoured milk, sweetened condensed milk, ultrapasteurised or ultra-high temperature (UHT) milk, yoghurt, dairy whitener, clarified butter (ghee), milk
powder, ingredients for baby foods, lassi and chaas. The Company has recently added production capacities
for several new dairy products including cheese, cottage cheese (paneer) and shrikhand and has commenced
production of these products in Fiscal 2016.
The Company sells products under retail consumer brands as well as ingredient products or as comanufactured products to a number of institutional and multinational companies. Its integrated business
model encompasses almost all aspects of the dairy industry value chain, including cattle feed supply, engaging
with farmers on cattle health and milk production, procurement of raw milk, and the production, supply and
sale of a range of processed milk and dairy products. The Company believes that its integrated business
model enables them to leverage the dairy industry value chain, ensure efficiency in costs and operating
margins and exercise more control over the production process resulting in quality products.
The Company produces a range of milk and dairy products including milk-based specialty ingredient products
and co-manufactured products for a large number of Indian and multinational companies. The specialty
ingredient products include nutrition supplements and formulations for baby food, sweetened condensed
milk, partially skimmed milk, skimmed milk powder, skimmed milk preparations, full cream milk powder and
specialty milk powder for various reputed consumer product companies including Mondelez India Foods
Private Limited (formerly Cadbury India Limited) and Abbott Healthcare Private Limited. Co-manufactured
products include specialty milk powders, curd (dahi), clarified butter (ghee), dairy whiteners, yogurts,
processed and concentrated milk, and ice creams for various institutional customers including Britannia
Industries Limited, Mother Dairy Fruit & Vegetable Private Limited and Heritage Foods Limited.
The Company’s retail consumer products include pasteurized milk, UHT milk, flavoured milk, sweetened
condensed milk, dairy whitener, milk powder, lassi, curd (dahi), chaas and clarified butter (ghee) sold under
the Prabhat, Flava and Milk Magic brands. Over the years, it has developed a large distribution network to
market and distribute retail consumer products across India.
Disclaimer
Prabhat Dairy Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial
public offer of its equity shares and has filed the RHP with the Registrar of Companies, Pune. The RHP is available on the websites of SEBI, BSE,
NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively, GC-BRLMs at www.edelweissfin.com and
http://www.macquarie.com/in/about/disclosures/india-list-of-offer-documents,respectively, and the BRLM at www.sbicaps.com. Investors should
note that investment in Equity Shares involves a high degree of risk and for details relating to the same, please see the section entitled titled
"Risk Factors" on page 19 of the RHP. The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other
jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance
with the applicable laws of such jurisdiction. The Equity Shares have not been and will not be registered under the U.S. Securities Act, 1933, as
amended (the "U.S. Securities Act") or any state securities laws in the United States, and unless so registered may not be offered or sold
within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S.
Securities Act and applicable state securities laws. Accordingly, such Equity Shares are being offered and sold outside of the United States in
offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and
sales occur.
This press release is only for information purposes. This is not a Prospectus announcement and does not constitute an invitation or offer to
acquire, purchase or subscribed to securities. All the capitalised terms used and not specifically defined here shall have the meaning ascribed to
them in the RHP.
For further information, please contact: Ms. Purvi Shah - 9833431331/ 09820531932