Dodla Dairy’s initial public offering will be open to subscribe on Wednesday. This will be the third company to launch IPO this week, after Sona Comstar and Shyam Metallics.
Equity shares issued by the Company will be registered with BSE and national stock exchanges. ICICI Securities and Axis Capital is a book that runs the main manager for offers.
Here are 10 main things that need to be known before subscribing to public problems:
1) public problems
IPO consists of a new edition of RS 50 Crore and offers for sale up to 1.09.85.444 Equity shares by existing sales shareholders.
Offers for sale consisting of up to 92 Equity Stocks Lakh by Investors TPG Dodla Dairy Holdings Pte Ltd. Offer for sale also consists of sales of up to 4,16,604 equity shares by Dodla Sunil Reddy, 10.41.509 Equity shares by Dodla Family Trust, and 3.27.331 Equity shares by Dodla Deepa Reddy, all of which are part of the promoter group and promoter.
2) IPO Date
Public problems will be opened on June 16 and the closing date is June 18. Anchor book, if any, will open for a day on June 15, the day before the problem is opened for retail, non-institutional investors, and quality institutional buyers, and.
3) ribbon prices
The company in consultation with merchant bankers has repaired the price band for offers at Rs 421-428 per equity stock.
4) fundraising and object problems
The company plans to raise Rs 520.17 Crore at the higher tip of the price ribbon.
Net results of new problems (i.e. After reducing bidding costs) will be used to pay a certain loan (RS 32.26 Crore) available by companies from ICICI Bank, Hongkong and Shanghai Banking Corporation, and HDFC Bank; Funding capital expenditure requirements (Rs 7.15 Crore); and company general needs.
5) Lot size and parts ordered with conference
Investors can bid at least 35 equity shares and in multiples of 35 equity shares afterwards. So retail investors can apply for shares worth a minimum of Rs 14,980 and the maximum RS 1,94,740.
The company has booked up to 50 percent of the measure of offers for institutional buyers who qualified, 15 percent for non-institutional investors, and 35 percent balances for retail investors.
6) Company Profile
Dodla Dair is an integrated milk company based in South India. The main source of income is the sale of milk and value-added waters (VAPS) in the branded consumer market.
Among the private milk players with a significant presence in the southern region of India, it was the third highest in terms of milk procurement per day and the second highest in terms of market presence throughout India among private milk players, said Crisil.
The operation in India is opposite the Five Indian countries – Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra, while overseas operations are based on Uganda and Kenya.
It processes and sells retail milk (full cream, standardized, fast and double ton) and produces milk-based products based on dadih, ultra-high temperature processed milk, ghee, butter, milk and ice cream. It also produces and sells animal feed to farmers through procurement networks.
In March 2021, the procurement operation consisted of 6,771 village level collection centers (VLCC), 232 village dairy farms and third party suppliers and 94 cold centers.
7) Competitive strength and strategy
a) This is a dairy company that focuses on consumers with a variety of products under the brand ‘Dodla Dairy’ and ‘Dodla’.
b) It has a business model integrated with the procurement capability, processing and distribution that is well-defined, in a cost-effective way.
c) This believes farmer-friendly policies and continuous involvement with them with the welfare program has strengthened its relationship with farmers who in turn have strengthened the process of procuring ASI.
d) Following strict quality control procedures.
e) The company has provided consistent growth over the past three years both in terms of financial and operational metrics.
f) The company has an experienced board and a senior management team.
Strategy
a) The company intends to increase its brand visibility and expand product range.
b) The company intends to further strengthen procurement and processing of operations.
c) This intends to continue to foster domestic and international with organic and inorganic growth to increase existence and income.
d) aims to increase the revenue from the added value-based products of the waters.
e) committed to the proposition of scientific techniques in dairy farms and allied activities.
8) financial comparison & peer
Dodla Dairy has provided consistent growth over the past three years both in terms of financial and operational metrics. His income from operations increased in CAGR 15.98 percent during FY18 and FY20, and EBITDA (profit before interest, tax, depreciation and amortization) increased at CAGR 11.81 percent in the same period.
Income from operations, EBITDA and profit after tax for the nine months period ended on 2020 December was Rs 1,413.5 Crore, Rs 206.5 Crore and Rs 116.38 Crore.
The debt ratio of equity (calculated as a total loan / total company equity) was 0.17 in December 2020, 0.35 at FY20, 0.39 on TA19, and 0.37 on FY18.
The income from milk-based milk and VAP sales was 72.81 percent and 27.18 percent respectively in FY20, and 75.32 percent and 24.68 percent in the nine-month period ended December 2020.
9) Promoters and management
Dodla Sunil Reddy, Dodla Sesha Reddy and Dodla Family Trust is a company promoter, holding aggregate 2,49,70,631 shares of equity (42.81 percent of pre-supply equity).
TPG Dodla Dairy Holdings (TDDPL) held a 25.77 percent of the shares and the International Finance Corporation had 4.55 percent of share ownership in the company.
Dodla Sesha Reddy is the Chair and Non-Executive Director at the Council. He has a milk industry experience of more than 22 years. He is currently director at the Nelcast Board and Dodla Enterprises.
Dodla Sunil Reddy is the implementing director of the company. He has more than 25 years of experience in the dairy industry. He is responsible for managing business strategies with focusing on accountability, competitive performance and value creation.
Madhusudhana Reddy Ambavaram is the director all the time, while Akshay Tanna is a non-executive nomination director on the board.
King Rathinam, Ponnavolu Divya, Rampraveen Swaminathan, and Raman Tallam Pamanam are independent directors on the board.
Anjaneyulu Ganji is a company’s Chief Financial Officer. He has various years of experience in the role of accounting in various industries. Before joining the company, he was associated with Cummins and Maersk.
Venkat Krishna Reddy Busireddy is a company Chief Executive Officer. He has more than 35 years of experience in the dairy sector. He has been with the company for more than 23 years. Before joining the company, he was associated with the main extraction.
10) income, return and date listing
After covering public problems on June 18, finalizing the allocation with the designated share exchange will take place around June 23, and funds will be returned around June 24.
The allocated equity shares will be credited to the Investor Demat account that qualifies around June 25, and the equity stock trading will begin around June 28.
