Dodla Dairy IPO :
Dodla Dairy is based in Hyderabad. The company is active in the dairy industry. It processes, procures, markets and distributes various milk products and milk. Some of its most selling products are curd, ice-cream, ghee, butter, etc. The brand is well recognised in South India and has its major operations in Telangana, Tamil Nadu, Andhra Pradesh, Maharashtra and more. The company also sells its products overseas to countries like Kenya, Uganda and Singapore.
Dodla Dairy sells its products under the brand name Dodla, KC+, Dodla Dairy, Dodla + and Dairy Top. The company has nearly thirteen processing units for milk and other products. Its operations are spread across 11 states in India with more than 40 sales offices and 3330 Distributions agents.
IPO DETAILS
The Dodla Dairy IPO is set to get launched on 16th June, 2021. The subscription timeline extends till 18th June, 2021. The size for Dodla Dairy IPO is 520.18 Crore Rs. Shares issued through Offer for sale are 470.18 Crore Rs. Shares worth 50 Crore Rs are issued through Fresh issue. The minimum lot size is 35 shares and the price is set at 421 Rs. – 427 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 16th June, 2021 |
| IPO CLOSING DATE | 18th June, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 10 Rs |
| IPO price band | 421 Rs. – 427 Rs. |
| LOT SIZE | 35 shares |
| MINIMUM ORDER QUANTITY | 35 shares |
| ISSUE SIZE | 520.18 Crore Rs. |
| OFFER FOR SALE | 470.18 Crore Rs. |
| FRESH ISSUE | 50 Crore Rs. |
| LISTING AT | BSE, NSE |
| LISTING DATE | 28th June, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 16th June, 2021 |
| IPO CLOSING DATE | 18th June, 2021 |
| IPO ALLOTMENT DATE | 23rd June, 2021 |
| REFUNDS | 24th June, 2021 |
| DEMAT A/C CREDITED ON | 25th June, 2021 |
| IPO LISTING DATE | 28th June, 2021 |
The Dodla Dairy IPO begins for subscription from 16th June, 2021. The IPO subscription would continue till 18th June, 2021. The allotment status for the shareholders who applied would come on 23rd June, 2021. The refunds for the ones who did not get allotment would be initiated on 24th June, 2021. The DEMAT accounts of shareholders would be credited on 25th June, 2021. The listing of the company would be accompanied on 28th June, 2021.
PROMOTER AND LEAD MANAGERS
The promoters for the Dodla Dairy Company are Dodla Sesha Reddy, Dodla Family Trust and Dodla Sunil Reddy. The holding on part of the promoter before IPO allotment was 68.52%. The post-IPO promoter holding would equal 64.17%.
The lead managers for the company are :
- ICICI Securities Limited
- Axis Capital Limited
OBJECTIVES FOR THE IPO
- The company is running low on its capital requirements. The IPO money will be utilized to finance its capital requirements.
- The money from the IPO can also be utilized to meet general corporate purposes.
- The company wants to repay its debts and also have some liquidity for prepayments of creditors. The IPO money will provide the resources for the same.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-19 | 2018-19 | 2017-18 |
| ASSETS | 8000 | 7520 | 6090 |
| REVENUE | 21450 | 17000 | 15970 |
| NET PROFIT | 498 | 627 | 568 |
Dodla Dairy is an excellent revenue generation machine. This is noticeable from the fact that the revenue has increased by 5000 Crore Rs in the mere span of 3 years. The assets have just increased by 2000 Crore for such revenue generation. On the other side there is one problem with the company which is the profit generation ratio. The profits of the firm are shrinking which can be a COVID effect.
However the company has registered for almost 800 Crore of profits in Sept 2020 with a revenue of 9180 Crore Rs and assets of 8180 Crore Rs. This is a significant jump in the profits of the company given its trend for the same.
PROS
- Dodla Dairy has excellent revenue generation capabilities.
- It has a diversified product portfolio and also has overseas business.
- The distribution channel of the company is solid with more than 3330 distributors across India.
- It has a major stake in its customers in South India which consumes more milk than other zones in India.
CONS
- The company’s capacity to generate profits is shrinking with time. The assets are growing but the profits are not improving simultaneously.
- The company has low liquidity and hence it is raising IPO money to pay its debts and carry on the capital expenditure.
- Strong competition from AMUL and other Dairy brands.
DODLA DAIRY IPO IN ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the DODLA DAIRY IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
