Dodla Dairy Limited IPO

Gaurav Seth
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Gaurav Seth


Incorporated in 1995, Dodla Dairy Limited is an integrated dairy company based in south India deriving its revenue primarily from the sale of milk and dairy-based products in the consumer market for the FY 2020 and six months period ended September 30, 2020. As per CRISIL reports, out of the private dairy players operating in southern India, Dodla Dairy is the 3rd largest company as of 31st December 2020 in terms of per day milk procurement with its average number of 1.02 million liters of raw milk per day. Also, the company ranks second highest as per reports in terms of market presence across India among private dairy companies with a significant market share in southern India. 

The main operations of the company are across the 5 Indian states which are Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and  Maharashtra. As of 31 December 2020, this consists of an average procurement of 1.02 million liters of raw milk per day from approx 1,14,920 farmers through 6,624 VLCCs (Village Level connection Centres), 254 dairy farms, and third party suppliers. The company processes & sells milk of different varieties like full cream, standardized, toned & double toned along with other dairy-based products such as curd, UHT milk, butter, ghee, flavored milk, ghee, and ice creams, etc. Their revenue from the sale of milk and other dairy products constituted 72.81% & 27.18% of their revenue in FY20 and 74.45% & 25.55% for the six months ended 30th September 2020.

The revenue from operations of the company increased at a growth rate of 15.98% over Fiscal 2018 to 2020. As of FY 2020, the revenue was 2,139 crores, EBITDA was 140 crores while experiencing an increase of 11.81% during the period of FY 2018-2020  and PAT was 49.87 crores. Their sales increased from 1,589 crores in Fiscal 2018 to 2,136.16 crores in Fiscal 2020.

The promoters of the company are Dodla Sunil Reddy, Dodla Sesha Reddy, and Dodla Family Trust.

Strengths of the company:

  • Customer-focused company with a diversified product portfolio under the “Dodla Diary” & “Dodla” brands.
  • Has an integrated business model with procurement, processing, and distribution capabilities.
  • Long term relationships & focused engagement with dairy farmers
  • The company has rigorous quality control frameworks
  • Delivered consistent financial growth over the last years
  • Has an experienced senior management team

Purpose of the IPO:

  • Repayment or pre-payments of the borrowings of the company
  • To fund the capital expenditure requirements of the company
  • For general corporate purposes

Financial Performance of the company:

 For the six-month period ended 30th September 2020FY 2020FY 2019FY 2018
Total Revenue918.222,145.641,699.451,597.01
Total Expenses812.482,063.771,606.171,516.57
Profit After Tax74.7749.8762.7656.85
Total Assets818.32800.30751.92608.96

*All the values are in crores and as per DRHP.

Valuation of the Company:

 For the six-month period ended 30th September 2020FY 2020FY 2019FY 2018
Basic Earnings per Share (EPS)13.438.9611.2710.21
Diluted Earnings per Share (EPS)13.438.9611.2610.21
Return on Net Worth (%)14.72%11.50%15.44%16.74%
Net Assets Value per Equity share91.2377.8772.9960.99

*As per RHP. 

Dodla Dairy Limited IPO DRHP

IPO details:

Face Value₹10 per equity share
Market Lot35 Shares
Minimum Order Quantity35 Shares
Price Band₹421- ₹428 per equity share
Issue typeBook Built Issue IPO
Issue Size₹520.18 Crores
Fresh Issue₹50 Crores
Offer for Sale₹470.18 Crores
Listing NSE, BSE

Important IPO dates:

Open Date16th June 2021
Close Date18th June 2021
Basis of Allotment Date23rd June 2021
Initiation of Refunds24th June 2021
The credit of shares to Demat Account25th June 2021
Listing Date28th June 2021

Allocation Quota:

Qualified Institutional Buyers (QIBs)Not more than 50%
Non- Institutional Buyers (NIIs)Not less than 15%
Retail InvestorsNot less than 35%

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