InvestorQ : What are the details and views on Dodla Dairy Limited IPO?
Deepali Khupte made post
IPO

What are the details and views on Dodla Dairy Limited IPO?

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Swapnil Sarang answered.
2 weeks ago
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IPO Insights:

IPO Opening Date16 June, 2021
IPO Closing Date18 June, 2021
IPO PriceRs 421 to Rs 428
Market Lot/ Minimum order quantity35 shares
Issue SizeRs 520.18 crore
Fresh IssueRs 50 crore
Offer for SaleRs 470.18 crore

Dodla Dairy is an integrated dairy company in South India and incorporated in 1995. The company is involved in procurement, processing, distribution, and marketing of milk including, standardized, toned, double toned, and other dairy products like curd, ghee, butter, flavored milk, etc. It has a total of 13 processing plants to process milk and manufacture dairy-based value-added products. Its key Indian markets are Telangana, Tamil Nadu, Andhra Pradesh, Karnataka, and Maharashtra, while in the overseas market, it serves countries like Uganda and Kenya. The company has a strong distribution network of 40 sales offices, 863 milk distributors, 3336 distribution agents, and 449 product distributors across 11 states in India.

Strengths:

  • Leading dairy player in the Southern Indian region.
  • Strong Distribution network.
  • Experienced Board of Directors and managerial team.
  • Large product portfolio.
  • An integrated business model with stringent quality control procedures.

Objectives of the issue:

  1. To finance capital expenditure requirements of the company.
  2. To meet general corporate expenses.
  3. To repay the company’s borrowings fully or partially.

Financials:

Particulars30-Sep-20
Total Assets8,183.23
Total Revenue9,182.22
Profit After Tax747.78

I would suggest you should do your research before investing in this company. It appears that its financials are good, so it has good growth potential in the long run. However, expectations are that listing gains would not be high under this IPO. The view mentioned is my personal view and should not be confused with expert advice.


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