Mumbai: Shares of dairy company Parag Milk Foods Ltd rose as much as 9.2% on their debut on Thursday, after the initial public offering (IPO) managed to sail through after an extension of its closing and a cut in the lower end of its price band earlier this month.

The stock opened at 215 a share and touched a high and a low of 234.75 and 215.70, respectively. The scrip was closed at 247.80 on the BSE, up 15.26% from its offer price of 215 a share.

On 6 May, when the IPO was first slated to close, the portion set aside for institutions was not completely filled in and the firm had to extend it to 11 May. The company also lowered its price band to 215-227 a share from 220-227.

Capital markets regulator Securities and Exchange Board of India’s (Sebi) Issue of Capital and Disclosure Requirements stipulate full subscription from institutional investors.

The IPO finally concluded with a 1.15 times total subscription.

The issue was priced at 215 for institutional investors and 203 for retail investors.

Based on the price band, the firm raised 751 crore, of which 300 crore will go to Parag Milk as fresh capital. The remainder will go to shareholders, including IDFC Private Equity and Motilal Oswal Financial Services Ltd.

Given the downward revision in price, the issue size had marginally increased to 19.5 million shares when calculated at the lower end of the price band, stock exchange data showed. Earlier, the company would have sold 1.91 crore shares.

IDFC Private Equity, the wholly-owned subsidiary of IDFC Ltd, offered to sell about 58.4% of its holding. The Mumbai-based entity, which holds about 20.1% stake, was to sell about 8.26 million shares, according to the company’s share sale prospectus.

Other private equity investors in the company—India Excellence Business Fund (IBEF) and IBEF-1 sponsored by Motilal Oswal Financial Services Ltd—were to sell 6.02 million shares.

Kotak Mahindra Capital Co. Ltd, JM Financial Institutional Securities Ltd, IDFC Securities Ltd and Motilal Oswal Investment Advisors Pvt. Ltd were the bankers to the issue.

In 2014-15, Parag Milk Foods reported a revenue of 1,440.8 crore, up from 1,087 crore in the previous year. It reported a profit of 29.4 crore in 2014-15, up from 14.5 crore, according to the company’s prospectus.

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