On the first day of bidding, the Initial Public Offering (IPO) of Dodla Dairy has been subscribed around 1.40 times today. Against IPO size of 85.07 lakh equity shares, the offer has received bids for 90.52 lakh equity shares as showed by the subscription data available on exchanges.
While non-institutional investors have seen a subscription of 8 per cent, a subscription of around 2.73 times have been seen by the portion set aside especially for retail investors and a subscription of 2 per cent have been seen by qualified institutional buyers. At the higher end of the price band of ₹421 to ₹428 per equity share, Dodla dairy intends to raise ₹520.17 crores.
With an offer for sale of up to 1,09,85,444 equity shares by TPG Dodla Dairy Holdings Pte Ltd and promoters, fresh issues worth ₹50 crores has been comprised by the IPO.
Along with being available at a reasonable valuation compared to its peers, Dodla Dairy has a good potential for the future, as believed by the brokerage recommending a subscribe rating for the Dodla Dairy IPO.
With a strong consumer recognition, evidently in states of Andhra Pradesh, Tamil Nadu, Karnataka and Telangana, Dodla Dairy has developed one of the leading brands in the dairy products industry in South India.
From 1.23 days in FY20 to 0.66 days in 9MF21, Dodla Dairy has improved its receivable days along with its trade receivables coming to an amount of ₹7.20 crore and ₹3.39 crore as of FY20 and 9MFY21 respectively. In terms of both financial and operational metrics, the company has delivered consistent growth over the last three financial years.
