IDFC Private Equity has invested Rs. 155 crore ($29 million) in Pune-based Parag Milk Foods to acquire approximately 15-20% stake.
Amarchand Mangaldas advised IDFC with a team led by Partner Raghubir Menon along with Senior Associate Ekta Gupta
Rajani & Associates advised Parag Milk with a team led by Partners Prem Rajani and Poorvi Sanjanwala along with Associate Karishma Jumani.
The transaction involved a primary investment by IDFC in the Parag Milk by way of subscription to certain securities and a secondary investment by IDFC in Parag Milk by way of buy-out of partial stake held by existing investor, Motilal Oswal and another shareholder.
According to Dealcurry, the investment is the largest PE infusion in the country’s dairy sector. These funds will be utilised to build capacities in various product lines and to strengthen its procurement infrastructure.
ET reports, Parag, which retails 'Gowardhan'and 'Go' brands, was earlier planning to raise up to Rs 500 crore through an initial public offering to provide an exit route to Motilal Oswal.
The deal marks IDFC PE's first investment outside infrastructure or related sectors, highlighting the shift among sector funds to include growing consumer companies in their portfolio.