Dodla Dairy Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹428
Per ShareLot Size
35 Shares
Minimum Investment
₹14,980
Issue Size
₹512.49 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Dodla Dairy Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
42.81%
Issue Type
Book Building
ISIN
INE021O01019
About the Company
Dodla Dairy Limited is an integrated dairy company based in south India primarily deriving all of its revenue for Fiscal 2020 and for the nine months period ended December 31, 2020 from the sale of milk and dairy based VAPs in the branded consumer market.
Industry Overview
Consumption of milk and dairy products is a dominant part of Indian consumers' diet. As per the National Account Statistics 2017 report, dairy products comprise nearly 22% of total spend by households on food and non-alcoholic beverages. Overall, dairy products accounted for 6.1-6.5% of the total PFCE between FY12 and FY16 (at constant prices). Various rounds of NSSO's surveys on expenditure pattern of Indian households have shown that recently, the food consumption pattern in India has undergone a change in favour of high-value and more nutritious food items such as milk and milk products, mulberry fruits extracts, fruits and vegetables, and away from staple and starch centric cereals. Amongst private dairy players with a significant presence in the southern region of India, the company is the third highest in terms of milk procurement per day with an average procurement of 1.02 million litres of raw milk per day ("MLPD") as of December 31, 2020 and second highest in terms of market presence across all of India amongst private dairy players with a significant presence in the southern region of India
Company History
Dodla Dairy Limited was incorporated on May 15, 1995 at Hyderabad, Andhra Pradesh as a public limited company under the Companies Act, 1956. The Company commenced business on May 23, 1995. The Company has not changed its name since incorporation.
Products & Services
- Pasteurized product milk, UHT Milk, Sterilized flavored milk, Curd(Dahi), Butter, Clarified butter(ghee), Butter milk, Lassi, Ice creams, Paneer, Kulfi, Milk based sweets
Growth Strategy
- Enhance its brand visibility and expand the reach of its products
- Further strengthen its procurement and processing operations
- Expand its operations domestically and internationally by way of organic and inorganic growth
- Increase its revenues from dairy based VAPs
- Research and Development in dairy farming and allied activities
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial Public Offering of up to 12,153,668 equity shares* of face value of Rs.10 each ("equity shares") of Dodla Dairy Limited ("company") for cash at a price of Rs.428 per equity share (including a share premium of Rs.418 per equity share) (the "offer price") aggregating up to Rs. 520.18 Crores ("offer"). The offer comprises a fresh issue of 1,168,224 equity shares aggregating up to Rs.50 Crores and an offer for sale of 10,985,444 equity shares consisting of 9,200,000 equity shares by Tpg Dodla Dairy Holdings Pte Ltd. ("investor selling shareholder") and 416,604 equity shares by Dodla Sunil Reddy and 1,041,509 equity shares by Dodla Family Trust ("promoter selling shareholders"), and 327,331 equity shares by Dodla Deepa Reddy ("promoter group selling shareholder" and together with the investor selling shareholder and the promoter selling shareholders, the "selling shareholders"), aggregating up to Rs. 470.18 Crores ("offer for sale"). The offer constituted 20.43% of the fully diluted post offer paid up equity share capital of the company. * subject to finalisation of basis of allotment The offer price is Rs.428 of the fae value of Rs.10 ach and is 42.8 times of the face value.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Consumer focused dairy company with a diverse range of products under the "Dodla Dairy" and "Dodla brands;
- Integrated business model with well-defined procurement, processing and distribution capabilities;
- Focused engagement and long term relationship with dairy farmers;
- Stringent quality control procedures;
- Financial Growth and operational efficiencies;
- Its operations are dependent on the supply of large amounts of raw milk, and its inability to procure adequate amounts of raw milk from farmers and third party suppliers, at competitive prices, may have an adverse effect on its business, results of operations and financial condition.
- The coronavirus disease (COVID-19) has had an adverse effect on its business and operations and the extent to which it may continue to do so in the future, is uncertain and cannot be predicted.
- Any actual or alleged contamination or deterioration of its products or its raw materials could result in legal liability, damage its reputation and adversely affect its business prospects and consequently its financial performance.
- The supply of raw milk is subject to seasonal factors, and does not necessarily match the seasonal change in demand for its products. Consequently, its inability to accurately forecast demand for its products, may have an adverse effect on its business, results of operations and financial condition.
- Its processing plants, procurement operations in relation to procurement of raw milk and distribution operations are primarily concentrated in southern India and any adverse developments affecting this region could have an adverse effect on its business, results of operations and financial condition.