Dodla Dairy's Rs 520 crore IPO to hit market on June 16; designate band mounted at Rs 421-428

NEW DELHI: Dodla Dairy, an integrated Hyderabad-based fully dairy firm, will hit the predominant market with a Rs 520 crore initial public offering (IPO) on Wednesday. On the block are a new say of shares price up to Rs 50 crore and an supply in the marketplace of up to 10,985,444 shares, which is ready to be equipped in the Rs 421-428 designate band.

Some 35 per cent of the difficulty is reserved for retail investors, 50 per cent for certified institutional investors (QIBs), and the comfort 15 per cent for non-institutional investors. Traders can tell for a tell for plenty of 35 shares and in multiples thereafter.

Dodla Dairy is the third-finest dairy in India when it comes to day-to-day milk procurement with a median procurement of 1.03 million litres of raw milk per day as of March 31. It is the 2d-finest non-public dairy player when it comes to market presence. The firm primarily caters to five states, particularly Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra. It additionally operates worldwide locations particularly Uganda and Kenya.

Dodla sells merchandise in the home market below brands a lot like Dodla Dairy, Dodla, and KC+. It sells merchandise foreign below brands Dodla Dairy, Dairy Top, and “Dodla+”. It processes and sells retail milk and produces dairy-based fully cost-added merchandise a lot like curd, extremely-excessive temperature processed milk, ghee, butter, flavoured milk and icecream, among others.

It additionally manufactures and sells cattle feed to farmers by its procurement network.

Income from sale of milk and dairy accounted for 72.81 per cent of FY20 full revenues. Price merchandise accounted for 27.18 per cent of full revenues. In the first nine months of FY21, cost-added merchandise accounted for 24.68 per cent and milk merchandise 75.32 per cent of revenue.

The firm’s processing operations consist of the processing of the smooth raw milk into packaged milk and manufacturing of assorted dairy-based fully VAPs by 13 processing flowers with an mixture set in capability of 1.70 MLPD. These include the Vedasandur and Batlagundu processing flowers, which Dodla Dairy received from KC Dairy Products. As a result of Covid-led disruptions, the firm saw 20 per cent topple in volumes and 12 per cent topple in gross sales in the four quarters to December 2020.