Dodla Dairy IPO: Investors can apply for listing gains, long term investment, Market Guru Anil Singhvi says

Zee Business Managing Editor Anil Singhvi said that investors should apply for Dodla Dairy IPO for listing gains and also with a view to long term investments. They can expect reasonable listing gains and not exceptional listing gains on the listing day, he cautions. Singhvi said if the strength in market continues then strong listing gains are possible, if the market sees some profit booking and slips a little from current levels, then listing gains will be miniscule.

The Rs 520 crore initial public offering (IPO) of Dodla Dairy opens for subscription today for Investors, i.e. on June 16, 2021. The price band has been fixed at Rs 421-428 per equity share. The public issue will open for subscription on Wednesday till June 18, 2021. Singhvi said that listing will happen above the issue price and long term investors can see good returns from this stock.
 

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Singhvi said that the promoters of Dodla Dairy are highly experienced and extremely passionate about the business of the company. Singhvi said promoters of the company are professional and have made a strong brand in the dairy business.

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लंबी अवधि में भी मिलेगा अच्छा मुनाफा...#EditorsTake #DodlaDairyIPO #DodlaDairy #IPO @ZeeBusiness @NSEIndia @BSEIndia https://t.co/ApWWkmtf13

— Anil Singhvi Zee Business (@AnilSinghvi_) June 16, 2021

Singhvi said that the growth of the company has been extremely good in the past 2 years. The company has made good profit and the Return on Equity (RoE) is nearly 26%. The price multiple of the company is cheaper to industry peers. Singhvi said listing gains are possible on the stock considering the valuations of the company.

Singhvi said that IFC (International Finance Corporation) holds a 4.75% stake in the company. Anchor book details highlight that IFC has increased stake which is surprising because mostly Investors encash some stake when an IPO happens and book some profit. However, IFC is buying additional stake in Anchor Book, reinforces confidence among other investors and shows IFC is confident on the future growth prospects of Dodla Dairy.   

Singhvi said that Dodla Dairy Limited is an integrated dairy company in South India. Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra are the key Indian market segments served by the company.