Dodla Dairy has filed with SEBI to raise Rs 800 crores from the market. The issuer plans Dodla Dairy IPO date sometime in May 2021. It is the second attempt from the brand. The company initially filed in 2018 for Rs 500 crores but didn’t carry it out. This time they are looking to raise Rs 50 crores in fresh shares and the rest in offer for sale (OFS) equities. The OFS component of the offer comprises around one crore equities from current promoters and investors.
Dodla Dairy is an integrated dairy firm based in Hyderabad. It primarily caters to five Indian states of Andhra Pradesh, Telangana, Karnataka, Tamilnadu, and Maharashtra, while its overseas operation is spread in Uganda and Kenya.
Amongst private diary players, Dodla has a significant presence, predominantly in South India. The business ranked third amongst private players in December 2020, with an average daily procurement of 1.02 million litres of raw milk per day. A CRISIL report had ranked Dodla in the second position in terms of market presence among Indian private dairy players.
In FY20, the company derived all its revenue from selling packaged milk and dairy-based VAPs. The company received respectively 72.81 and 27.18 percent of its revenue from selling raw milk and dairy-based VAPs. During the H1 of FY 21, the figures were 74.45 and 25.55 percent. During the initial six months of FY 21, Dodla recorded a profit of Rs 74.7 cores, while its profit for the financial year stood at Rs 49.8 crores.
Dodla Dairy compares itself with listed peers like Hatsun Agro Products, Heritage Foods and Parag Milk Foods.
Let’s look at the details of the offer.
- Dodla Dairy IPO shares will carry a face value of Rs 10
- The offer for sale IPO contains approximately 1,00,85,444 equity shares from promoters and investors
- Promoter TPG Dodla Dairy Holdings will sell 83 lakh shares, and Dodla Sunil Reddy, Dodla Deepa Reddy, and Dodla Family Trust have planned to offload respectively 4,16,604, 3,27,331, and 10.41 lakh equity shares
- Dodla IPO will also contain fresh issues worth Rs 50 crore, which the company proposes to utilise to repay debt and meet general capital expenditures
ICICI Securities and Axis Capital are the book-running lead managers of the offer. Dodla Dairy IPO shares will list in both BSE and NSE.
IPO is a preferred way to invest in a company’s growth at an affordable price. But the act of selecting the right IPO that will generate a significant return in the future is challenging, especially with the limited availability of information regarding the issuing business. It is essential to research and look for reviews and research reports from experts before betting your money. If you are not sure where to dig for IPO information, the prospectus is a good starting point to understand the merit of an offer.