Parag Milk Foods: Promoters continue to release pledged shares

Parag Milk Foods, a leading manufacturer and marketer of branded dairy products, announced the further release of pledged shares by the promoters.

The promoters have released 15.5 lakh equity shares, which are in addition to the earlier release of 75 lakh equity shares pledged with Kotak Mahindra Investments that took place on April 23, 2020, by paying Rs 54 crore. This payment has been made towards the loan amounting to Rs 64 crore.

Previously in November 2019, promoters of Parag Milk Foods had shown interest in a plan to buy about 4.2 million shares of the Mumbai-based company from the open market in the coming quarters. The chairman and promoters of the company are looking to bring down their pledged shares by 20 per cent over the coming quarters. The increase in the promoter stake and reduction in pledged shares reflect optimism, showing the promoter's assurance in the company prospects.

Parag Milk Foods is the second largest player in the cheese market in India, enjoying a 35 per cent market share after Amul (42 per cent market share).

Parag Milk Foods's stock opened today at Rs 96.75 and declined nearly seven per cent and made an intraday low of Rs 91.15 on BSE.