Dodla Dairy IPO: GMP, Issue Price, Issue Size

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Dodla Dairy Limited IPO
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Dodla Dairy IPO other dairy products and is all set to make a debut in the stock market with an issue size of 520.18 Cr. Dodla Dairy Limited is an integrated dairy company in South India that is engaged in the procurement, processing, distribution, and marketing of milk.     

Dodla Dairy IPO -Overview    

Dodla Dairy Limited IPO Issue Date           16-18 June 2021          
Dodla Dairy Limited IPO Opening Date           16 July 2021         
Dodla Dairy Limited IPO Face Value           INR 10 per share           
Dodla Dairy Limited IPO Price           INR 428 per share          
Dodla Dairy Limited IPO Lot Size           35 Shares          
Issue Size           520.18 Cr          
Offer for sale           470.18 Cr          
Issue Type           Book built Issue IPO           
Listing At           BSE, NSE          
QIB Shares Offered             84.88 times          
NII (HNI) Shares           73.26 times          
Company Promoters           Dodla Sunil Reddy, Dodla Sesha Reddy, and Dodla Family trust are the company promoters. 
Prudent Corporate Advisory Services IPO Details

Dodla Dairy IPO-Tentative Dates           

Dodla Dairy Limited IPO opening date           16 June 2021          
Dodla Dairy Limited IPO closing date           18 June 2021          
Basis of Allotment           23 June 2021          
Initiation of Refunds           24 June 2021              
The credit of Shares to Demat          25 June 2021           
Dodla Dairy Limited IPO Listing Date           28 June 2021          

Dodla Dairy IPO – Industry Overview.          

The Indian dairy market industry has grown at a CAGR of ~10% Dodla Dairy fiscal 2015 and 2020 to reach ₹6.7 trillion in fiscal 2020. This growth has come on the back of a 6-7% increase in volumes and a 3-4% increase in price realizations. The dairy industry includes milk, traditional value-added products (including Butter, Ghee, Paneer, Khoa, Curd & Skimmed milk powder), and embedded value products (flavored milk, ice cream, yogurt, cheese, and whey). 

Over the last five years, the growth in the industry has been driven by value-added products (~35% of the industry in value terms) which have witnessed a growth of 12-14% Dodla Dairy fiscal 2015 and 2020. Amongst the value-added products, emerging value-added products have grown at a faster rate of ~18% (owing to a ~12% increase in volumes and a 6% increase in prices) as compared to 12-13% for traditional value-added products. The fastest-growing products during these five years Dodla Dairy ice cream at ~21%, Dodla Dairy by paneer (19%) and cheese (14%). 

Dodla Dairy IPO – Company Overview     

Dodla Dairy Limited is an integrated dairy company based in south India primarily deriving the revenue for Fiscal 2020 and for the six months that ended September 30, 2020, from the sale of milk and dairy based VAPs in the branded consumer market. Amongst private dairy players with a  significant presence in the southern region of  India 

Dodla Dairy are the third highest in terms of milk procurement per day with an average procurement of 1.02million liters of raw milk per day (“MLPD”) as of December 31, 2020, and second highest in terms of market presence across all of India amongst private dairy players with a significant presence in the southern region of India. operations in India are primarily across the five Indian states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra. 

Dodla Dairy overseas operations are based in Uganda and Kenya. Dodla Dairy Indian operations are undertaken under Dodla Dairy brands “Dodla Dairy”, “Dodla” and “KC+”. Dodla Dairy overseas operations are undertaken under Dodla Dairy brands “Dodla Dairy”, “Dairy Top” and “Dodla+”. Dodla Dairy process and sell retail milk (full cream, standardized, toned and double toned) and produce dairy-based value-added products (“VAPs”) such as curd, Ultra-High Temperature processed (“UHT”) milk, ghee, butter, flavored milk, and ice cream amongst others. Dodla Dairy also manufactures and sells cattle feed to farmers through Dodla Dairy procurement network.

 Dodla Dairy IPO -Objectives           

  • To repay or prepay the company’s borrowings fully or partially. 
  • To finance capital expenditure requirements. 
  • To meet general corporate purposes. 

Dodla Dairy IPO – Financial Statements          

Particulars          31-Dec-21        31-Mar-20        31-Mar-19        
Total Assets          8,637.87 8,003.08 7,519.21 
Total Revenue          14,170.35 21,456.49 16,994.59 
Profit After Tax          1,163.85 498.71 627.62 

Strengths          

  • Large product portfolio. 
  • Leading dairy player in the Southern region of India. 
  • Strong distribution network. 
  • Integrated business model with stringent quality control procedure. 
  • Experienced board and managerial team. 

Weakness                               

  • Dependency on the supply of large amounts of raw milk 
  • Seasonal change in the demand and supply of milk and its inability to forecast it accurately. 
  • Pending legal proceedings against the promoters Dodla sunil reddy and dodla sesha reddy. 

Company Contact Information

Dodla Dairy Limited
8-2-293/82/A/270-Q, Road No. 10-C,
Jubilee Hills, Hyderabad, 500 033

Phone: +91 40 4546 7777
Email: mail@dodladairy.com
Websitehttp://www.dodladairy.com/

IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: dodladairy.ipo@kfintech.com
Website: https://karisma.kfintech.com/

IPO Lead Manager(s)

  1. Axis Capital Limited (Past IPO Performance)
  2. ICICI Securities Limited (Past IPO Performance)

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