New Delhi, June 15, 2021: Dodla Dairy, an integrated Hyderabad-based dairy company, will hit the primary market with a Rs 520 crore initial public offering (IPO) on Wednesday. On the block are a fresh issue of shares worth up to Rs 50 crore and an offer for sale of up to 10,985,444 shares, which will be sold in the Rs 421-428 price band.
Some 35 per cent of the issue is reserved for retail investors, 50 per cent for qualified institutional buyers (QIBs), and the rest 15 per cent for non-institutional investors. Investors can bid for a bid for a lot of 35 shares and in multiples thereafter.
Dodla Dairy is the third-largest dairy in India in terms of daily milk procurement with an average procurement of 1.03 million litres of raw milk per day as of March 31. It is the second-largest private dairy player in terms of market presence. The company primarily caters to five states, namely Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra. It also operates countries namely Uganda and Kenya.
Dodla sells products in the domestic market under brands such as Dodla Dairy, Dodla, and KC+. It sells products overseas under brands Dodla Dairy, Dairy Top, and “Dodla+”. It processes and sells retail milk and produces dairy-based value-added products such as curd, ultra-high temperature processed milk, ghee, butter, flavoured milk and icecream, among others.
It also manufactures and sells cattle feed to farmers through its procurement network.
The company’s processing operations consist of the processing of the collected raw milk into packaged milk and manufacturing of other dairy-based VAPs by 13 processing plants with an aggregate installed capacity of 1.70 MLPD. These include the Vedasandur and Batlagundu processing plants, which Dodla Dairy acquired from KC Dairy Products. Due to Covid-led disruptions, the company saw 20 per cent drop in volumes and 12 per cent drop in sales in the four quarters to December 2020.
