Dindigul Farm Product Limited is coming up with an IPO consisting of a fresh issue of 64,50,000 shares worth INR 34.83 crores. The company aims to invest, manage working capital, and cover general corporate needs.
Dindigul Farm IPO – Important Dates
| Dindigul Farm Product Limited IPO Date | June 20, 2024 to June 24, 2024 |
| Dindigul Farm Product Limited IPO Listing Date | June 27, 2024 |
| Dindigul Farm Product Limited IPO Price | INR 51-54 per share |
| Dindigul Farm Product Limited IPO Lot Size | 2000 shares |
| Dindigul Farm Product Limited IPO Total Issue Size | INR 30.79 crores |
| Dindigul Farm Product Limited IPO Basis of Allotment | June 25, 2024 |
| Dindigul Farm Product Limited IPO Initiation of Refunds | June 26, 2024 |
| Dindigul Farm Product Limited IPO Credit of Shares to Demat | June 26, 2024 |
| Dindigul Farm Product Limited IPO Issue Type | Book Built Issue IPO |
| Dindigul Farm Product Limited IPO Listing At | BSE SME |
Dindigul Farm Product Limited IPO – Company Profile
Dindigul Farm Product Limited, established in 2010, processes whole and skimmed milk into various dairy ingredients at its 15-acre facility in Dindigul. Compliant with FSSC 22000, FSSAI, Halal, Kosher, and other regulatory standards.
They procure 50,000 liters of milk daily from farmers and 30,000-100,000 liters of whole milk from third-party suppliers. With 150+ village collection centers, they access 4,000+ farmers and 50+ dairy farms.
Quality control is paramount at Dindigul Farm Product Limited. They utilize automatic milk analyzers at village collection centers and employ rigorous testing methods at chilling centers. Essential products undergo regular testing by NABL-approved labs to meet certification standards.
Dindigul Farm Product Ltd IPO Fundamental Analysis
Dindigul Farm Product Limited Technologies’ financial analysis reveals a mixed performance. Revenue experienced substantial growth, though 9-month figures fell short. Profitability surged, while increased liabilities and debt-equity ratio signify reliance on debt financing amidst potential business growth.
- Revenue Trend: The revenue increased from ₹2,831.88 lakhs in March 2022 to ₹8,157.74 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 6,874.75 lakhs, falling short of last year’s benchmark.
- Equity and Liabilities: Liability has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating increased reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹(420.08) lakhs in March 2022 to ₹588.40 lakhs by December 2023. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹(2.90) in March 2022 to ₹4.09 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW for the period ended as of 23rd December 2023 is 149.49%.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s an increase in the Inventory Turnover Ratio, which might suggest higher sales or efficient inventory management.
Dindigul Farm IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As at 23 December, 2023 |
| Revenue (₹ in lakhs) | 2,831.88 | 8,157.74 | 6,874.75 |
| Equity (₹ in lakhs) | (2,162.72) | (1,638.46) | 393.94 |
| Expenses (₹ in lakhs) | 3,434.59 | 7,682.67 | 6,287.76 |
| Profit and Loss After Tax (₹ in lakhs) | (420.08) | 525.79 | 588.40 |
| Diluted EPS only (₹) | (2.90) | 3.59 | 4.09 |
| Return on Net Worth (%) | Negative | NA | 149.49 |
| NAV per Equity Share (₹) | (15.04) | (11.39) | 2.29 |
| Total Assets (in lakhs) | 2,496.45 | 2,899.84 | 5,123.46 |
| Total Liabilities (in lakhs) | 832.35 | 1,261.38 | 4,729.52 |
| Debt Equity Ratio | (0.91) | (1.21) | 4.63 |
| Current Ratio (in times) | 0.45 | 0.60 | 1.33 |
| Inventory Turnover Ratio | 4.61 | 11.83 | 6.60 |
Dindigul Farm Product Limited IPO Peer Comparison
Dindigul Farm Products Limited specializes in dairy processing but faces profit challenges. Dodla Dairy Limited leads with robust revenue and profitability. Parag Milk Foods Limited maintains stable revenue and moderate profits. Modern Dairies Limited faces revenue and profitability difficulties.
| Company | Typeof Financial | Current Market Price (₹) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) | Revenue from operations (₹ in Lakhs) |
| Dindigul Farm Products Limited | Standalone | – | 10 | – | 3.59 | NA | (11.39) | 8,157.74 |
| Dodla Dairy Limited | Standalone | 465.00 | 10 | 29.36 | 15.84 | 10.76 | 148.44 | 258,412.40 |
| Parag Milk Foods Limited | Standalone | 73.20 | 10 | 11.55 | 6.34 | 8.37 | 69.81 | 285,320.00 |
| Modern Dairies Limited | Standalone | 18.81 | 10 | 3.61 | 5.21 | (12.64) | (41.06) | 21,608.13 |
Dindigul Farm IPO Objective
The main objective of Dindigul Farm Product Limited is to invest in capital and manage working capital.
- Capital Expenditure: The company intends to utilize INR 12.12 crores from net proceeds to purchase plant and machinery to start a butter production line, aiming to expand its value-added product portfolio.
- Working Capital Requirements: The company plans to utilize INR 13.84 crores from the issue’s net proceeds to meet the estimated net working capital requirements for FY 2023-24, with the balance covered by borrowings and internal accruals.
- General Corporate Purposes: The company will allocate funds to general corporate goals, including acquiring land/property, hiring human resources, strategic alliances, growth opportunities, servicing debts, capital expenditure, working capital, ordinary business expenses, strategic initiatives, and corporate exigencies.
Dindigul Farm IPO Risks And Challenges
Dindigul Farm Product Limited’s risks include past losses amid market challenges worsened by COVID-19, uncertainty in future profitability due to rising operational expenses, reliance on raw material sourcing without contracts, and product liability risks.
- Despite recent profits, the company faced losses in previous years due to market challenges exacerbated by Covid-19. Future profitability is uncertain amid increasing operational expenses and market unpredictability, posing challenges to sustaining positive cash flow.
- The company relies on sourcing raw materials, primarily whole and skimmed milk, from farmers and third-party suppliers without formal contracts, facing potential supply disruptions and cost fluctuations, impacting production and sales.
- The company faces product liability risks due to food safety regulations, potential contamination incidents, and associated damages, which affect its reputation and financial stability. Lack of liability coverage exposes the company to significant financial risks.
Dindigul Farm Product Ltd IPO – Industry & Market Potential
The dairy sector in India has experienced substantial growth, ranking first globally in milk production. With prudent policies, India achieved a 5.29% growth rate, contributing to increased availability of milk products globally.
The dairy market in India, valued at Rs. 13.17 lakh crore in 2021, is projected to reach Rs. 30.84 lakh crore by 2027, with liquid milk accounting for half. Growth prospects indicate increasing demand, necessitating enhanced processing infrastructure.
Under NPDD, four projects in Gujarat, Jharkhand, and Tamil Nadu, totaling ₹ 232.37 crore (Central Share ₹ 157.84 crore), were approved for establishing BMCs, AMCU, milk adulteration detection machines, strengthening dairy plant laboratories, and ICT networking.
Dindigul Farm Product Limited IPO – Type of Offer
Dindigul Farm Product Limited is coming up with an IPO consisting of a fresh issue of 64,50,000 shares worth INR 34.83 crores. The company aims to invest, manage working capital, and cover general corporate needs.
Dindigul Farm IPO Offer Size
The offer size of Dindigul Farm Product Limited is INR 34.83 crores, consisting of a fresh issue of 64,50,000 shares. The company seeks funds to invest in capital, manage working capital, and cover general corporate needs.
Dindigul Farm Product Limited IPO Allotment Structure
Dindigul Farm Product Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 326,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 326,000 shares, are reserved for marker makers.
How to apply for a Dindigul Farm Product Limited IPO?
To apply for the Dindigul Farm Product Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Dindigul Farm Product Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Dindigul Farm Product Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Dindigul Farm Product Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Dindigul Farm Product Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Dindigul Farm Product Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Dindigul Farm Product Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Dindigul Farm Product Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Dindigul Farm Product Limited Ltd IPO Offer Registrar
The registrar for the Dindigul Farm Product Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West), Mumbai,
Maharashtra, India – 400 083
Tel. Number: +91 810 811 4949
Email Id: [email protected]
Website: www.linkintime.co.in
Dindigul Farm Product Limited Limited IPO – FAQs
The allotment date of the Dindigul Farm Product Limited IPO is June 25, 2024.
The price band of the issue is INR 51-54 per share.
The offer size of Dindigul Farm Product Limited is INR 34.83 crores, consisting of a fresh issue of 64,50,000 shares. The company seeks funds to invest in capital, manage working capital, and cover general corporate needs.
The listing date of Dindigul Farm Product Limited’s IPO is June 27, 2024.
