Dodla Dairy IPO fully subscribed on day 1

The initial public offering (IPO) of Dodla Dairy has been fully subscribed on June 16, the first day of the bidding process.

The offer has received bids for 85.61 lakh equity shares against the total issue size of 85.07 lakh equity shares, according to the subscription data available on the exchanges till 4:00 pm.

The portion set aside for retail investors has been subscribed 1.97 times, while that of non-institutional investors saw 8 percent subscription. The qualified institutional buyers's portion received 2 percent subscription so far.

Dodla Dairy IPO: Here are key things to know before you subscribe

The Rs 520-crore IPO of Dodla Dairy, which opened at a price band of Rs 421-428 per equity share, closes on June 18.

The company has already raised Rs 156.05 crore by allocating a total of 36,46,099 equity shares at Rs 428 apiece to anchor investors on June 15 ahead of its IPO.

Brokerages have recommended subscribing to the Dodla Dairy IPO on the back of the company’s strong financial performance, robust business growth, growth potential, reasonable valuations, and long-term prospects of the domestic dairy industry.

"Dodla Dairy has shown improvement in the operating margin with an efficient working capital cycle, said the brokerage. "Going forward, we believe that Dodla Dairy would perform better on the back of an increase in value-added product mix," it said. Thus, it has a 'subscribe' rating on the issue," said Angel Broking.