On Thursday, Parag Milk Foods experienced a significant surge in its share price, soaring over 9% after the announcement of a ₹161 crore fundraising initiative through a preferential issuance of convertible warrants. This positive movement saw shares climbing as high as ₹185.00 on the Bombay Stock Exchange (BSE).
Fundraising Strategy to Drive Growth
In a meeting held on April 3, the Board of Directors greenlit the plan to raise ₹161 crore via convertible warrants. This strategic move aims to enhance the company’s financial positioning by optimizing debt and catering to its working capital and capital expenditure needs.
- Convertible Warrants Issued: The company plans to issue 9 million convertible warrants, which will be convertible into an equal number of equity shares, each with a face value of ₹10.
- Pricing Details: The price set for these warrants is ₹179.10 per share, which includes a premium of ₹169.10.
Additionally, Parag Milk Foods has scheduled an extraordinary general meeting for May 3, 2025, to obtain shareholder approval for this fundraising initiative, which will be conducted via video conferencing.
Stock Performance Overview
Over the past month, Parag Milk Foods has seen its share price rise by over 28%. However, on a year-to-date basis, the stock has faced a decline of 3.5%. Notably, in the last year, the small-cap stock has decreased by 15%.
Despite these short-term fluctuations, Parag Milk Foods has shown remarkable long-term potential. Here’s a snapshot of its performance:
- 2-Year Growth: 135% increase
- 5-Year Growth: 180% return
As of 10:50 AM, shares of Parag Milk Foods were trading at ₹183.05, reflecting an increase of 8.41%.
Conclusion
Parag Milk Foods’ recent fundraising effort not only highlights the company’s proactive approach to managing its finances but also reassures investors of its growth trajectory. With a solid history of delivering multibagger returns, stakeholders remain optimistic about the company’s future.
For more insights on stock performance and investment strategies, explore our related articles on the latest market trends and expert analyses.
