Dodla Dairy lists at Rs 550, a 28.50% premium to issue price

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Dodla Dairy on Monday made a strong debut on NSE, as the scrip got listed at Rs ­550, a 28.50% premium over its issue price of Rs 428. On BSE, the scrip got listed at Rs 528, up 23.36%.

Dodla Dairy’s Rs 520.17-crore initial public offer was sold from June 16 to June 18, was subscribed 45.61 times during its bidding period as the received bids for 38,80,64,950 shares against 85,07,569 shares on offer, according to an update on the NSE. The qualified institutional buyers (QIBs) category was subscribed 84.88 times, non-institutional investors 73.26 times, and retail individual investors 11.33 times.

The IPO comprised of a fresh issue of Rs 50 crore and an offer for sale of 1,09,85,444 equity shares. The company is a leading dairy company in southern India. The proceeds from the issue will be used for payment of certain borrowings, funding capital expenditure requirements of the company, and for general corporate purposes.

Dodla Dairy Limited is an integrated dairy company in South India that is engaged in the procurement, processing, distribution, and marketing of milk and other dairy products. It processes and sells milk including standardized, toned, and double toned milk, and produces dairy products like curd, butter, ghee, ice cream, flavoured milk, etc. The company’s operations in India are primarily across four states — Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. Its international operations are based in Uganda and Kenya.

The dairy has a total of 13 processing plants to process raw material into packaged milk and manufacture dairy-based value-added products. The firm has a strong distribution network of 40 sales offices, 3336 distribution agents, 863 milk distributors, and 449 product distributors across 11 states in India.