Hyderabad-based Dodla Dairy is set to hit the capital markets on June 16 and has set its price band at Rs 421-428 per share for a Rs 520 crore initial public offer (IPO).
The dairy company is the third largest in India in terms of milk procurement and has a strong presence in southern Indian states.
The IPO comprises a fresh issue of up to Rs 50 crore and an offer for sale of up to 1,09,85,444 equity shares by promoters and investors. The offer for sale consists of 92 lakh equity shares by investor TPG Dodla Dairy Holdings, and 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.
Funds raised through the IPO will be utilised for repaying debts of Rs 32.26 crore availed from ICICI Bank, the Hongkong and Shanghai Banking Corporation (HSBC) and HDFC Bank, and for capital expenditure requirements of around Rs 7.15 crore.
Dodla Dairy Limited was incorporated in 1995 and production commenced in 1997. Currently, the company’s procurement is centered in five states, while its products are retailed in 11 states. It has 94 milk chilling centers. The company processes and markets packaged milk and other value-added dairy products, including ghee, butter, curd, paneer, gulab jamun and other at-home consumption items.
The company reported a profit of Rs 74.78 crore for the six months ending September 2020.