The offer received bids for 2.80 crore shares as against 85.07 lakh shares on offer.
The initial public offer (IPO) of Dodla Dairy received bids for 2.80 crore shares as against 85.07 lakh shares on offer, according to the stock exchange data at 17:00 IST on Thursday (17 June 2021). The issue was subscribed 3.30 times.
The issue opened for bidding on Wednesday, 16 June 2021, and it will close on Friday, 18 June 2021. The price band for the IPO is set at Rs 421-428 per share. An investor can bid for a minimum of 35 equity shares and in multiples thereof.
The IPO comprises a fresh issuance of shares worth up to Rs 50 crore and an offer for sale of up to 1,09,85,444 equity shares by TPG Dodla Dairy Holdings, Dodla Sunil Reddy, Dodla Deepa Reddy and Dodla Family Trust.
Ahead of the IPO, the company finalized allocation of 36,46,099 equity shares to 18 anchor investors at Rs 428 per share aggregating to Rs 156.05 crore.
The net proceeds of the fresh issue are proposed to be utilised for repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company from ICICI Bank, the Hong Kong and Shanghai Banking Corporation and HDFC Bank amounting Rs 32.264 crore; funding capital expenditure requirements of the company amounting Rs 7.151 crore; and for general corporate purposes.
The company as on 31 March 2021, had a total outstanding debt of Rs 87.37 crore comprising of long-term borrowings, working capital facilities and NCDs.
Dodla Dairy is an integrated dairy company based in South India. The company also has overseas presence with dairy operations in Uganda and Kenya. The company manufactures and markets milk and dairy based value added products in the branded consumer markets under the brands "Dodla Dairy", "Dodla" and "KC+" ( in India) and "Dodla Dairy", "Dairy Top" and "Dodla+" (in overseas markets). The company's operations in India are primarily across the five Indian states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra.
The company reported a net profit of Rs 116.39 crore and sales of Rs 1,413.51 crore for the nine months ended on 31 December 2020.
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