Promoters to slurp up more stake in Parag Milk foods Limited

Parag milk foods Ltd. is the second largest player in the Indian cheese market with 35 per cent market share. It is the leader in Cow Ghee category and trades under brand name ‘Gowardhan’ Ghee. The company has achieved a strong position with a 1/3rd market share in cheese market and has become the second largest player after Amul. Promoters of Parag Milk Foods Ltd., which offers the Go brand of cheese and other products, are looking to further raise their stake in the company to 51 per cent in the next few months from around 45.96 per cent as of November 29, according to a report.
As per a leading news network, the promoters plan to purchase around 4.2 million shares of the Mumbai-based company from the open market in the next few quarters. The news comes after Parag Milk chairman and promoter Devendra Shah purchased 200,000 shares of the company from the market on November 15. At that day’s close of Rs 126.75 on BSE, Shah paid around Rs 2.53 crores for the shares.
The promoters had pledged 36 per cent of their overall shareholding to lenders, of which 31 per cent has been freed after debt repayment. Shah said that the promoter group was 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 are surely  positive signs. This raise shows the promoter’s confidence in the company prospects .