Dodla Dairy, a Hyderabad-based integrated dairy company, will launch its initial public offering (IPO) on June 16 at a price band of Rs 421-428 per share. The issue, which will close on June 18, is the fourth main-board company to launch IPO in the next week after Shyam Metalics, Sona Comstar and KIMS Hospitals.
The Rs 520 crore-public offer of Dodla Dairy comprises a fresh issue of shares worth Rs 50 crore and an offer for sale of up to 1,09,85,444 equity shares by promoters and investor.
The offer for sale consists of 92 lakh equity shares by investor TPG Dodla Dairy Holdings, 10,41,509 equity shares by Dodla Family Trust, 4,16,604 equity shares by Dodla Sunil Reddy, and 3,27,331 equity shares by Dodla Deepa Reddy.
Dodla Sunil Reddy, Dodla Sesha Reddy, and Dodla Family trust are the company promoters.
The market lot size is 35 shares and a retail-individual investor can apply for up to 13 lots, making the maximum investment of 455 shares or Rs 1,94,740 at the higher end of the price band.
Dodla Dairy proposes to utilise fresh issue proceeds for repaying the debt of Rs 32.26 crore availed from various banks and for capital expenditure requirements of Rs 7.15 crore.
The company has reserved 50 percent of the total issue size for qualified institutional buyers, 35 percent for retail, and 15 percent for non-institutional investors.
The shares of the company are expected to list on June 28, 2021.
The book running lead managers to the issue are ICICI Securities and Axis Capital.
Dodla Dairy is an integrated dairy company in South India engaged in the procurement, processing, distribution, and marketing of milk and other dairy products. In FY20, the sale of milk and dairy-based VAPs constituted 72.81 percent and 27.18 percent respectively, of its revenue.
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The company has operations under the brand name of Dodla, Dodla Dairy, and KC+ whereas it serves the overseas market under the brand name of Dodla Dairy, Dairy Top, and Dodla+. Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra are the key Indian market segments served by the company while in the overseas market, it mainly serves countries like Uganda and Kenya.
The company has a total of 13 processing plants to process raw material into packaged milk and manufacture dairy-based value-added products. It has a distribution network of 40 sales offices, 3336 distribution agents, 863 milk distributors, and 449 product distributors across 11 states in India.
First Published: IST