June 16, 2021 / 05: 21 PM IST
The preliminary public offering of Dodla Dairy has been subscribed 1.40 conditions on June 16, the foremost day of bidding.
The provide has acquired bids for 1.19 crore equity shares in opposition to IPO dimension of 85.07 lakh equity shares, the subscription files out there on the exchanges showed.
The half attach aside for retail investors has seen a subscription of 2.73 conditions, whereas non-institutional investors has seen a subscription of 14 percent.
The qualified institutional investors bear seen a subscription of 2 percent.
TPG-backed Dodla Dairy intends to elevate Rs 520.17 crore at better cease of designate band of Rs 421-428 per equity fragment. The IPO contains a new jam of Rs 50 crore and a proposal within the marketplace of up to 1,09,85,444 equity shares by TPG Dodla Dairy Holdings Pte Ltd and promoters.
Additionally read - Dodla Dairy IPO opens: 10 things to know sooner than subscribing public jam
"On the upper designate band of Rs 428 and EPS of Rs 14.57 for FY20, the P/E ratio works out to be 47.8x. If we annualise the 9MFY21 EPS, then P/E ratio works out to be 15.4x, which is practical. If we review Dodla Dairy with its peers handle Hatsun Agro and Heritage Foods, then Heritage Foods is out there at a P/E of 12.1x, which is decrease than DDL. Even supposing, Hatsun Agro is out there at a P/E of 79.1x its FY21 earnings, which is drastically better than Dodla Dairy," acknowledged KR Choksey.
The brokerage believes, Dodla Dairy has a correct possible for future and is additionally out there at a cheap valuation when in comparison with its peers. "In consequence, we counsel a ‘subscribe’ ranking for the Dodla Dairy IPO," acknowledged the brokerage.
Dodla Dairy has developed one in every of the leading manufacturers within the dairy products industry in South India with solid particular person recognition, specifically within the states of Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.
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The company has delivered consistent development over the final three monetary years both in phrases of monetary and operational metrics. The company has improved its debt to equity ratio (D/E) over the years. The D/E ratio of the company modified into 0.17, 0.35, 0.39 and zero.37 as on 9MFY21, FY20, FY19 and FY18 respectively.
Further, Dodla Dairy has additionally improved its receivable days from 1.23 days in FY20 to 0.66 days in 9MFY21, with its commerce receivables amounting to Rs 7.20 crore and Rs 3.39 crore as on FY20 and 9MFY21 respectively.
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