Dodla Dairy Limited is a public limited company, registered and corporate office in Hyderabad city of Telangana state in India. The company was incorporated in 1995 and began production in 1997. Dodla Dairy IPO will hit the market on 16 June 2021.
Table of Contents
Presence
They have 90 milk chilling centers here. Some of their plants are ISO 22000: 2005 certified while two are ISO 50001: 2011 (NMS) certified.
They distribution and marketing operations include distribution of their products through 40 sales offices, 3,336 distribution agents, 863 milk distributors and 449 milk product distributors in nine states of India.
It operates in India primarily in five Indian states Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra. While overseas operations are based in Uganda and Kenya.
Products
Additionally, as of December 31, 2020, their products are also available through 371 “Dodla Retail Parlors”, which commenced operations in 2016 and are spread across the states of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka.
Their product portfolio includes milk, butter milk, ghee, paneer, curd, flavored milk, milk peda, ice cream and milk based sweat. These products are easily packaged to suit the various needs of their consumers. Dodla Dairy major competitors companies are Hatsun Agro Products, Heritage Foods and Parag Milk Foods.
The firm plans to use the net proceeds of fresh points for repayment and / or prepayment, in whole or in part, of certain borrowings taken by the firm; Funding for capital expenditure requirements and common corporate purposes.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 818.32 | 800.31 | 751.92 | 608.96 | |
| Total Revenue | 812.49 | 2,063.78 | 1,699.46 | 1,597.01 | |
| Profit After Tax | 74.78 | 49.87 | 62.76 | 56.85 | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 8.96 | 8.96 | 3 |
| Financial Year 2019 | 11.27 | 11.26 | 2 |
| Financial Year 2018 | 10.21 | 10.21 | 1 |
| Weighted Average | 9.94 | 9.94 | |
| (6 months) Sep. 30, 2020 | 13.43 | 13.43 | – |
Issue
Dodla Dairy, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 800 crore on 15 February, 2021.
The Offer includes a fresh equity of Rs. 50 crore and an offer for sale(OFS) up to Rs. 1,00,85,444 equity shares of face value of 10 per share, by the promoters.
They got approval from Securities and Exchange Board of India(SEBI) on 26 April, 2021 to float the initial public offering (IPO) in the market.
Currently, their procurement is concentrated in 5 states and their products are available for purchase in 11 states.
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of The issue
- Consumer-focused dairy corporation with a varied product category under the “Dodla Dairy” and “Dodla” trademarks;
- Integrated business strategy with well-defined acquisition, manufacturing, and distribution skills.
- Personalized participation and long-term commitment with dairy farmers.
- Comprehensive quality assurance methods.
- Enhancing financial and functional efficiencies.
- A seasoned Board of Directors and top management team
IPO Details
| IPO Opening Date | 16 June 2021 |
| IPO Closing Date | 18 June 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 421 to 428 per equity share |
| Market Lot | 35 |
| Min Order Quantity | 35 |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 50 cr. |
| Offer for Sale | 1 cr. equity shares |
IPO Tentative Date
Dodla Dairy IPO opening date on 16 June 2021, and the closing date 18 June 2021. The issue may list 0n 28 June 2021.
| IPO Open Date | 16 June 2021 |
| IPO Close Date | 18 June 2021 |
| Basis of Allotment Date | 23 June 2021 |
| Initiation of Refunds | 24 June 2021 |
| Credit of Shares to Demat Account | 25 June 2021 |
| IPO Listing Date | 28 June 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
Dodla Dairy IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Dodla Dairy IPO.
Dodla Dairy IPO GMP
Dodla Dairy IPO Grey market premium is as follows and you can check GMP of other 4 IPOs as well from links given below:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 27 June 2021 | 85 | 1700 | |
| 26 June 2021 | 77 | 1200 | |
| 25 June 2021 | 81 | 4700 | |
| 24 June 2021 | 99 | 3300 | |
| 23 June 2021 | 93 | 2800 | |
| 22 June 2021 | 98 | 2000 | |
| 21 June 2021 | 95 | 1500 | |
| 20 June 2021 | 85 | 1000 | |
| 19 June 2021 | 90 | 1500 | |
| 18 June 2021 | 100 | 2500 | |
| 17 June 2021 | 156 | 4200 | |
| 16 June 2021 | 175 | 3500 | |
| 15 June 2021 | 140 | 2000 | |
| 14 June 2021 | 120 | 3500 | |
| 13 June 2021 | 95 | 2800 | |
| 12 June 2021 | 105 | 3500 | |
| 11 June 2021 | 85 | 2500 | |
| 10 June 2021 | 55 |
Check The GMP Of other 4 IPOs
Dodla Dairy IPO Review
You can apply for listing gain if you have short-term view and while if you have long term view then also you can apply as company is looking good.
Dodla Dairy IPO Risk
Since there are no legal documents with farmers, they are not bound to deliver their milk to Dodla and may opt to sell their milk to rivals instead. They buy raw milk from the states of Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka, where they own and manage 13 manufacturing facilities.
The sale of milk and dairy-based VAPs in southern India accounted for about 98.75 percent of revenue from business in Fiscal 2020, totaling Rs 19,542.35, million. They have already broken agreements with Standard Chartered Bank in regard to a term loan agreement.
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Dodla Dairy IPO Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 16 June 2021 | 1 | 0.02 | 0.14 | 2.73 | N/A | 1.40 |
| 17 June 2021 | 2 | 0.28 | 0.60 | 6.18 | N/A | 3.30 |
| 18 June 2021 | 3 | 84.88 | 73.26 | 11.13 | N/A | 45.62 |
Peer Comparison
| S. No. | Company Name | PE |
| 1 | Hatsun Agro Products | 102.3x |
| 2 | Heritage Foods | N/A |
| 3 | Parag Milk Foods | 9.7x |
Promoters
- Dodla Sunil Reddy
- Dodla Sesha Reddy
- Dodla family Trust
Promoter Holding
| Pre Issue Share Holding | 42.81% |
| Post Issue Share Holding |
Dodla Dairy IPO Prospectus
Contact Details
Dodla Dairy Limited
8-2-293/82/A/270-Q, Road No. 10-C, Jubilee Hills,
Hyderabad, 500 033, Telangana, India
Tel: +91 40 4546 7777
E-mail: [email protected]
Website: https://www.dodladairy.com/
Registrar
KFin Technologies Private Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- Axis Capital Limited
- ICICI Securities Limited
We hope we are able to answer all your questions about Dodla Dairy IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Renunciation
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Dodla Dairy limited
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Dodla Dairy limited applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Dodla Dairy IPO Opening Date?
Dodla Dairy IPO will open is 16 June 2021.
Dodla Dairy IPO Listing Date?
Dodla Dairy IPO will list on 28 June 2021.
Dodla Dairy IPO GMP Today?
Dodla Dairy IPO Grey Market Premium is INR 85.
Dodla Dairy IPO Allotment Date?
Dodla Dairy IPO basis of allotment will be 24 2021.
Lot size for Dodla Dairy IPO?
Lot size for Dodla Dairy IPO is 35.
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