Key sentence:
- The Dodla Dairy IPO will raise 520 crores through a fresh issue of equity shares.
- The Dodla Dairy IPO will open for subscription on June 28 at a price range of $421 to $428 per share.
- The issue’s book-running lead managers are ICICI Securities and Axis Capital.
On Wednesday, June 16, the Dodla Dairy IPO, which will raise 520 crores through a fresh issue of equity shares and an offer for sale by existing shareholders, will open for three days and finish on Friday, June 18.
The Dodla Dairy IPO will open for subscription on June 28 at a price range of $421 to $428 per share, with the shares expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on the same day.
The company submitted draught documents with the Securities and Exchange Board of India (SEBI) earlier this year. It gained approval to float its initial public offering in the last week of April from the capital markets regulator.
Dodla Dairy’s offering includes a new issue of equity shares worth Rs 50 crore and an offer for sale (OFS) of up to 1.09 crore equity shares with a face value of Rs 10 apiece.
Promoters Dodla Sunil Reddy and Dodla Deepa Reddy, and TPG Dodla Dairy Holdings are among the selling shareholders. Promoter shareholding in the firm will decline to 64.17 per cent from 68.52 per cent after the issuance.
Dodla Dairy’s public shareholding will increase to 35.83 per cent, up from 31.48 per cent before the IPO. Dodla Dairy’s stock will be increased to 5.95 crore shares.
According to regulatory documents, qualifying institutional buyers will receive 50% of the issuance of approximately 60.76 lakh equity shares on sale (QIB).
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Non-Institutional Investors (NII) have the opportunity to bid for 18.23 lakh equity shares or 15% of the entire issuance. 35 per cent of the total offer, or 42.53 lakh equity shares, are available to retail investors.
Dodla Dairy intends to use the funds raised through the new issue to re-pay or pre-pay the company’s debt. According to the company, the portion of the funds will also be applied to meet incremental capital expenditure requirements.
The issue’s book-running lead managers are ICICI Securities and Axis Capital.
Dodla Dairy, a Hyderabad-based integrated firm, was founded in 1995 and operated across southern India and Maharashtra.
The selling of milk and dairy-based Value-Added Goods in the branded consumer market is Dodla Dairy’s principal source of revenue. Fresh milk, ghee, butter, curd, and paneer, among other dairy products, are sold by the company for consumption at home.
According to Axis Capital, their brand also sells ultra-high-temperature processing (UHT) milk, flavoured milk, ice cream, and buttermilk. For the prior three fiscal years, the company has remained profitable.
After Shyam Metalics, Sona Comstar, and KIMS Hospitals, Dodla Dairy will be the fourth main-board business to conduct an initial public offering (IPO) in the next week.
