On the second day of the public issues, Dodla Dairy was subscribed 3.3 times. The diary with a remarkable presence in South India has the second biggest market presence in the country. It is the third largest in terms of daily milk procurement as well.
According to the subscription data available on the exchanges, investors have put in bids for 2.8 crore equity shares against the initial public offering (IPO) size of 85 lakh equity shares.
Since the portion set aside for retail investors had been subscribed 6.18 times, retail investors have stayed at the forefront. The parts reserved for qualified international buyers and non-institutional investors had witnessed a subscription of 28 percent and 60 percent respectively.
On June 16, Dodla Dairy, a private dairy player engaged in the procurement, processing, distribution along with marketing of milk and other value-added products opened its public issue of ₹520.17 crore besides a price band at ₹421-428 an equity share. The company has been planning to add milk products.
A fresh issue of shares aggregating up to ₹50 crore is offered and additionally, an offer for sale of ₹470.18 by selling shareholders. The fresh issue proceeds will be used for the repayment of debt.
Between FY21 to FY25, the Indian diary industry is expected to increase at a Compound Annual Growth Rate (CAGR) of 10-11 percent. Embedded value products such as flavoured milk, ice cream, yoghurt, cheese, whey among others are expected to outpace other segments and grow at 14-16 percent between FY21-FY25.