A leading dairy-FMCG company in India, Parag Milk Foods Limited, has announced that it has raised a total of Rs 131 crore through preferential allotment from marquee investors and promoters. Investors have put in around Rs 113 crore, demonstrating their trust in the company’s ethos, values as well as a promising growth strategy. In addition, the promoters will also invest Rs 18.75 crore.

Devendra Shah, chairman, Parag Milk Foods Ltd, said, “We have delivered a robust Q1 performance with a 57.6% Y-o-Y increase in revenue; surpassing our internal growth targets both in terms of volume and value. The overall growth is broad-based and driven by strong traction across all our verticals. As we enter into the festive season, the demand momentum for dairy products continues to accelerate and all our brands are witnessing a surge in the overall offtake. This fund raise comes at an opportune time to enable us to meet our expanded working capital need to capitalise on demand potential and pave the way for a profitable business ahead.”

He added, “We are delighted by the trust and belief shown by the marquee investors in the business and are thankful to our existing shareholders for their continued support. The current proceeds of preferential shares and warrants would be utilised to fund our long-term capital requirements and to enhance the working capital needs. This will aid in further strengthening our balance sheet and drive the company for accelerated growth ahead.”