PARAGMILKParag Milk Foods Ltd.
Parag Milk Foods to merge wholly owned subsidiary Bhagyalaxmi Dairy Farms
- Mergers & acquisitions
- Dairy products
Reviewed byKeshav SehgalBlacklitt Research
Parag Milk Foods (NSE: PARAGMILK) has approved a Scheme of Amalgamation of its wholly owned subsidiary Bhagyalaxmi Dairy Farms Private Limited into the company, it said in a filing on 03 Nov 2026. The scheme needs sanction from the National Company Law Tribunal and approvals from shareholders and creditors. The parent's total assets were ₹2,421.53 crore at 30 Sep 2026.
Key highlights
- Subsidiary total assets: ₹315.21 crore at 30 Sep 2026
- Subsidiary net worth: ₹61.38 crore; turnover ₹107.25 crore
- Parent net worth: ₹1,352.25 crore; turnover ₹2,135.89 crore
- No shares to be issued as consideration
The scheme in numbers
| Item | Detail |
|---|---|
| Transferor Company | Bhagyalaxmi Dairy Farms Private Limited, wholly owned subsidiary |
| Transferee Company | Parag Milk Foods Limited |
| Subsidiary total assets | ₹315.21 crore at 30 Sep 2026 (half year) |
| Subsidiary net worth | ₹61.38 crore |
| Subsidiary turnover | ₹107.25 crore (half year ended 30 Sep 2026) |
| Parent total assets | ₹2,421.53 crore at 30 Sep 2026 |
| Parent net worth | ₹1,352.25 crore |
| Parent turnover | ₹2,135.89 crore (half year ended 30 Sep 2026) |
| Consideration | None; the parent's shares in the subsidiary will be cancelled |
| Approvals | NCLT sanction, shareholder and creditor approvals, other regulatory approvals as required |
Structure and rationale
The scheme is made under Sections 230 to 232 of the Companies Act, 2013. The company says both companies are engaged in dairy manufacturing and processing, and in sale and marketing of milk and milk products, and that the merger is intended to simplify the group structure and consolidate the subsidiary's business with its holding company.
The company lists synergies of operations, direct access to capital, pooling of knowledge and simplification of the structure by reducing the number of legal entities and compliances as the rationale. Upon the scheme taking effect, the Transferor Company will be dissolved without being wound up.
Size of the two companies
The subsidiary's total assets of ₹315.21 crore are about 13.0% of the parent's ₹2,421.53 crore. Its turnover of ₹107.25 crore is about 5.0% of the parent's half-year turnover of ₹2,135.89 crore.
The parent reported consolidated total income of ₹945.98 crore for the June quarter... the latest quarter in the company's data is Q1 FY27, with net profit of ₹22.05 crore. The filing's figures for the subsidiary and parent are for the half year, so they do not show the subsidiary's share of quarterly profit.
What the scheme means for Parag Milk Foods' shareholders
The company says the shareholding pattern of the company will remain the same before and after the scheme, and that the subsidiary's shares held by the parent will be cancelled without any new share issue. The scheme has not yet been given effect in the financial results for the quarter and half year ended 30 Sep 2026.
The filing does not say when the scheme is expected to take effect, when the NCLT hearing will be held, or what effect the merger will have on consolidated results. The next step is NCLT sanction and the required approvals.
Filed with BSE on . Reference: Original filing (PDF)
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