Dodla Dairy Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Dodla Dairy IPO

Dodla Dairy IPO: Key Details

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Company Information

Dodla Dairy Limited, incorporated in 1995, is an integrated dairy company based in south India primarily deriving all its revenue from the sale of milk and dairy-based VAPs in the branded consumer market. Their integrated business model in India consists of procurement, processing, distribution and marketing operations.

Amongst private dairy players with a significant presence in the southern region of India, they are the third highest in terms of milk procurement per day and second highest in terms of market presence across all of India amongst private dairy players.

Operations in India are primarily across the five states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra. Overseas operations are based in Uganda and Kenya. Indian operations are undertaken under the brands “Dodla Dairy”, “Dodla” and “KC+”. Overseas
operations are undertaken under the brands “Dodla Dairy”, “Dairy Top” and “Dodla+”.

Competitive Strengths

  • Consumer focused dairy company with a diverse range of products under the “Dodla Dairy” and “Dodla” brands
  • Integrated business model with well-defined procurement, processing and distribution capabilities
  • Stringent quality control procedures
  • Financial Growth and operational efficiencies
  • Experienced Board and senior management team

Company Strategy

  • Enhance their brand visibility and expand the reach of its products
  • Further strengthen its procurement and processing operations
  • Expand operations domestically and internationally by way of organic and inorganic growth
  • Increase revenues from dairy based VAPs
  • Research and Development in dairy farming and allied activities

Proceeds from Dodla Dairy IPO will be used to:

  • Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company from ICICI Bank Limited; HSBC Limited, and HDFC Bank Limited
  • Funding capital expenditure requirements of the Company and
  • General corporate purposes

Dodla Dairy IPO: Financials

201820192020 Mar2020 Dec
Revenue from Ops₹1590.5 Cr₹1691.7 Cr₹2139.37 Cr₹1413.5 Cr
Profit before Excep*₹80.44 Cr₹93.28 Cr₹81.87 Cr₹162.13Cr
Profit after Tax23.59 Cr₹30.52 Cr₹32.00 Cr₹45.74 Cr
EPS (Basic)10.2111.278.9620.91
*Tax and Exceptional Items
As of March 2020EPS (Avg)P/E (Floor)P/E (Cap)
Based on basic EPS9.9442.3443.06

Comparison with listed industry peers

CompanyP/E (Cap)
Dodla Dairy43.06
Highest (Hatsun)123.5
Lowest (Parag)12.5
Sector Avg68.0

Dodla Dairy IPO Dashboard

Issue Details

TypeValue
Issue Size₹520.18 Cr
Fresh Issue50 Cr
Offer for Sale470.18 Cr
Face Value₹10/- per Equity Share
IPO Price₹421 – ₹428
Lot Size35 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open16/06/2021
Bid Close18/06/2021
Allotment Finalization23/06/2021
Initiation of Refunds24/06/2021
Credit of Shares25/06/2021
Listing Date28/06/2021

Lot Size and Price

LotsSharesAmount
135₹14,980
13455₹1,94,740

Promoter Holding

HoldingPercentage
Pre-Issue68.5 %
Post-Issue64.2 %

Dodla Dairy IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%24,30,734 shares
NII15%18,23,051 shares
RII (Retail)35%42,53,784 shares
Total100%85,07,569 shares

Dodla Dairy IPO: Risks

  • Operations are dependent on the supply of large amounts of raw milk, and any inability to procure adequate amounts of raw milk at competitive prices may have an adverse impact
  • Any actual or alleged contamination or deterioration of products or raw materials could result in legal liability and damage to reputation
  • The supply of raw milk is subject to seasonal factors and does not necessarily match the seasonal change in demand for products.
  • The company’s processing plants, procurement, and distribution operations are primarily concentrated in southern India
  • The company did not have adequate controls for managing its historical secretarial records and compliances as a result of which there have been certain inaccuracies and non-compliance with respect to certain provisions of the Companies Act and applicable FEMA regulation

For complete internal and external risk factors, you can refer the RHP of the company.

Dodla Dairy IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032.

Phone: 1-800-309-4001
Email: dodladairy.ipo[email protected]

Lead Managers of the Issue

ICICI Securities Limited
Axis Capital Limited

Phone: +91-22-4325 2183 / +91-22-2288 2460
Email: [email protected]

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