Dodla Dairy IPO

 

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.

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:

Check The GMP Of other 4 IPOs

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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