Parag Milk reduces debt burden; stock trades positive

Parag Milk Foods Ltd on Wednesday informed through a BSE filing that it has cleared further tranche of its outstanding loan amount of Rs 6 crore to Kotak Mahindra Investment Limited.

The company has nearly 48 per cent of pledged shares of the promoters’ total shareholding. Earlier this month, the company said that the promoters had pledged 186,93,000 equity shares with Kotak Mahindra Investments Limited. As part of the debt and outstanding amount, the company repaid Rs 31 crore on March 2, 2020.

In the same filing to the exchanges, the company also added that it would repay the total amount within 90 days and release entire pledged shares with the investment firm. On March 13, the company further repaid Rs 12.15 crore, which was part of 36 per cent earlier outstanding loan.

After the recent repayment, it would have Rs 14.85 crore loan amount remaining. As of the last reported financial numbers, the company had a borrowing of Rs 211 crore and the promoter holding of 46 per cent.

On Thursday, the shares were trading with gains of 7.55 per cent at Rs 59.85 on BSE.