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Dodla Dairy IPO Review 2021 with Today's GMP

 

Dodla Dairy logo
Source: ipowatch.in


Dodla Dairy IPO opens on 16th June and closed on 18th June, 2021. The company is planning to collect Rs 520.18 crores which comprises fresh issue of equity shares worth of Rs 50 crores and offer for sale (OFS) of Rs 470.18 crores.

In this article we cover all the important information related to the company and IPO, also we have covered the Grey market premium (GMP) for the shares of last one week. 


🖥 Table of Contents:

Dodla Dairy IPO Review 2021-

  1. About Company:
  2. Fundamentals of the Company:
  3. Strengths:
  4. Threats:
  5. Important Dates and Details:
  6. Objective of Issue:
  7. Grey Market Premium (GMP):


1) About Company:

Dodla Dairy Ltd is incorporated in the year 1995 by its founder Sunil Reddy. The company is engaged in processing, distribution and marketing of milk and other dairy products. The company primarily derives its revenue from sell of milk and dairy products like curd, butter, ghee, flavoured milk etc. 

The company has its presence not in India but also all around the world. The brands of the company popular in India are 'Dodla', 'Dodla Dairy' 'KC+' and 'Dodla Dairy' ,'Dairy Top', 'Dodla+' are famous in foreign countries. The company has 13 processing plants to process the raw material and convert it into packaged milk and other dairy products. The company has an efficient distribution channel of 40 sales office, 3336 distribution agents, 863 milk distributors and 449 dairy products distributor around 11 states of India. 

The company is at 3rd position in milk procurement among the private entities of this sector. It has a capacity of an average procurement of 1.02 million liters every day. 


2) Fundamentals of the Company:

There is no much data available for the company financials but from the below table you can get an idea of the company's financial situation. 


Particulars30-Sep-
2020
31-Mar-
2020
31-Mar-
2019
Total Assets8,183.238,003.087,519.21
Total Revenue9,182.2221,456.4916,994.59
Net Profit
After Tax
747.78498.71627.62



As we can see that the assets of the company is increasing yoy basis which shows that company is working to expand its business. The revenue for Sep 2020 ( 6 months data) is little bit less than past revenue performance of March 2020 and March 2021. But, as considering this year as abnormal year the revenue of the company is increasing. The net profit for Sep 2020 is increased as compared to last 2 years. 


3) Strengths:

  • The company has wide range of products at reasonable price range which can attract the more customers. 
  • Integrated business model with well defined procurement, processing, distributing and marketing capabilities. 
  • The company has its presence all over the globe. 
  • The company has shown steady growth in both business Operations and financials in last three years. 
  • The company have large and efficient distribution network. 
  • The company has experienced board which can tackle the any kind of tough situations. 

4) Threats:

  • The company is highly depending on the supply of large amount of raw materials. 
  • The Pandemic and other health related issue can adversely affect the operation and distribution of the company products. 
  • The subsidiary company's OPL and Dodla Kenya are reporting losses in last two years. 
  • There was a outstanding litigation proceeding against the company and board of directors of the company. 

You can Also Read, 


5) Important Dates and Details:

Dodla Dairy IPO Details:


Opening Date June 16, 2021
Closing DateJune 18, 2021
Issue TypeBook built issue
Face ValueRs 10 each
Market Lot35 shares
IPO PriceRs 421 to Rs 428
Listing atBSE, NSE
Issue value [.] Eq shares of Rs 10
( Aggregating up to Rs 520.18 crores)
Fresh issue[.] Eq shares of Rs 10 each
(Aggregating up to Rs 50 crores)
Offer for sale[.] Eq shares of Rs 10
(Aggregating up to Rs 470.18 crores)


Tentative Timetable of Dodla Dairy IPO:

Opening DateJun 16, 2021
Closing DateJun 18, 2021
Basis of AllotmentJun 23, 2021
Initiation of RefundJun 24, 2021
Credit of shares in Demat accountJun 25, 2021
Listing DateJun 28, 2021


The lot size contains 35 shares of Rs 14,980 and maximum a retail investor can apply for up to 13 lots i.e. 455 shares of Rs 1,94,470.

6) Objective of Issue:


The fund which company is raising through this IPO is utilized for following purpose:

  • Repayment/ prepayment of  debts of the company either fully or partially. 
  • For General corporate purpose. 
  • To fulfill the capital expenditure requirements. 

7) Grey Market Premium (GMP):


Before investing in any IPO it is important to check the grey market premium of the IPO. It decides whether the share will list on discount or on premium. 

The GMP of Dodla Dairy IPO for last one week is given below:

GMP OF Dodla Dairy IPO
Source: Google|Source: ipowatch.in

The expected return from Dodla Dairy IPO is 35%. You can check the GMP of Dodla Dairy IPO on ipowatch.in

Conclusion:


The IPO have a good premium of Rs 170. But, in last six days there was no premium is available at all. So, we have to check the premium till the second day we have seen consistent rise in GMP or constant at same price then we can apply for the IPO. 

I hope you like this article if you have any query write in comment box. Also write in which IPO you are going to apply. 

Happy Investing😀! 



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