Dodla Dairy IPO oversubscribed by 45.6 times

dodla dairy ipo

The initial public offer (IPO) of Dodla Dairy witnessed strong demand from investors as the issue was subscribed nearly 46 times on Friday, the last day of the bidding process.

Dodla Dairy, a leading dairy company based in South India is raising Rs 520 crore via its primary float. The issue comprises an offer for sale of up to 1,09,85,444 equity shares and fresh issuance of shares worth up to Rs 50 crore. The price range for the offer is fixed at ₹421 to ₹428 per share. The offer for sale consists of a share sale by the company’s promoters and private equity investor TPG Capital.

The net proceeds of the fresh issue will be utilized for repayment of certain borrowings availed by the company, funding capital expenditures of the company, and for general corporate purposes.

Dodla Dairy had said on Tuesday that it had raised over Rs 156 crore from 18 anchor investors ahead of its IPO, allocating a total of 36,46,099 equity shares at Rs 428 per share.

According to NSE, the IPO attracted bids for 388.10 million shares by 5:00 pm, which meant a 45.6 times subscription against the total issue of 8.51 million shares.

The Qualified Institutional Buyers (QIBs) category was subscribed 84.88 times, non-institutional investors 73.26 times, and retail individual investors (RIIs) 11.34 times.

Dodla Dairy is the third-largest player in terms of milk procurement per day, with an average procurement of 1.03 million liters of raw milk per day (MLPD) as of March 31, 2021. The company manufactures and markets milk and dairy-based value-added products in the branded consumer markets under the brand “Dodla Dairy”.

The company’s processing operations are spread across Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu and overseas operations in Uganda and Kenya with an aggregate installed capacity of 1.70 MLPD.

The company filed draft papers with the Securities and Exchange Board of India (SEBI) earlier this year and received the capital markets regulator’s approval to float its IPO in the last week of April.

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