Parag Milk Foods Share Price Jump 9% on ₹161 Crore Fundraising Plan

Parag Milk Foods’ share price rose over 9% on Thursday after the company announced a fundraising plan worth ₹161 crore. The stock reached a high of ₹185.00, gaining 9.56% on the BSE.

Board Approves Fundraising Plan

At a board meeting held on April 3, Parag Milk Foods approved raising ₹161 crore through the preferential issue of convertible warrants. These funds will be used to reduce debt and support the company’s working capital and capital expenditure needs.

As per the plan, 90 lakh convertible warrants will be issued at ₹179.10 per share (including a ₹169.10 premium). These warrants will later be converted into an equal number of equity shares. The company confirmed this in a regulatory filing.

Shareholders’ Meeting for Approval

To proceed with the fundraising, Parag Milk Foods will hold an EGM (extraordinary general meeting) on May 3, 2025. The meeting will be conducted through video conferencing to seek shareholders’ approval for the issue.

Stock Performance Overview

• Short-term gains: The stock has surged over 28% in the last month but is down 3.5% year-to-date (YTD).

• Long-term returns: Despite a 15% decline in one year, the stock has delivered 135% returns in two years and 180% over the past five years.

At 10:50 AM, Parag Milk Foods share price was trading 8.41% higher at ₹183.05 on the BSE.

Conclusion

Parag Milk Foods’ fundraising move signals strategic efforts to strengthen its financial position. Investors remain optimistic as the stock delivers strong long-term returns.

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