The IPO of Dodla Dairy will open on 16 June 2021 and close on 18 June 2021. The price band of this IPO has been fixed at 421-428 per share. Hyderabad-based Dodla Dairy is the third mainboard company to come out with an IPO in the coming week after Shyam Metalics which is Sona Comstar.
This IPO includes a fresh issue of Rs 50 crore. At the same time, there will be an offer for sale of 1,09,85,444 shares by the promoters. The offer for sale included TPG Dodla Dairy 92 lakh shares, Dodla Sunil Reddy 4,16,604 equity shares, Dodla Family Trust 10,41,509 equity shares and Dodla Deepa Reddy. Reddy) will sell 3,27,331 shares.
Dodla Sunil Reddy, Dodla Family Trust and Dodla Deepa Reddy are part of the promoter group. The lot size of this IPO will be 35 shares and then in multiples thereof.
The company will use the proceeds of the IPO to repay loans of Rs 32.26 crore from ICICI Bank, the Hongkong and Shanghai Banking Corporation (HSBC) and HDFC Bank and meet capital expenditure of Rs 7.15 crore. The company had a debt of Rs 87.37 crore as on 31 December 2020.
50 per cent of the issue is reserved for QIBs, 35 per cent for retail and 15 per cent for non-institutional investors. ICICI Securities and Axis Capital are the book running lead managers of this IPO.
Let us tell you that Dodla Dairy is a major company of dairy products along with other private players in South India, it has a strong hold in premium consumer markets. The company’s total revenue comes from the sale of milk and dairy products. According to a report by Crisil, it is the third largest company with a presence in South India in terms of milk procurement. It procures more than 10 lakh liters of milk every day. At the same time, it is the second largest private dairy company in South India in terms of market share.
These states have presence
The company’s presence is mainly in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra. Apart from this, the company also operates in Uganda and Kenya. The company gets 72.81% revenue from milk and 27.18% from dairy products. Dodla Dairy is compared with Hatsun Agro Products, Heritage Foods and Parag Milk Foods.
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