Dodla Dairy IPO opens TOMORROW: Price band, issue size, opening/closing details - All you need to know

Dodla Dairy, an integrated dairy company based in south India, is gearing up to roll out its public subscription on Wednesday, June 16. The dairy firm has fixed a price band of Rs 421-428 per share for its Rs 520-crore initial share sale.

So, what the key highlights that an investor should consider before investing in the Dodla Dairy IPO.

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The three-day initial public offering (IPO) will conclude on June 18 and the bidding for anchor investors open on Tuesday, June 15. The IPO is expected to fetch Rs 520.17 crore at the upper end of the issue price. The issue size of the IPO is Rs 512-520 crore.

Incorporated on May 15, 1995, at Hyderabad, Dodla Dairy is primarily deriving all of its revenue for fiscal 2020 and for the 9 months period ended December 31, 2020, from the sale of milk and dairy-based value-added products in the branded consumer market. The company’s integrated business model in India consists of procurement, processing, distribution and marketing operations.

The company sells fresh milk, ghee, butter, curd, paneer, and sweets, which are targeted at consumption at home. The company's operations in India are primarily across the four south Indian states of Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. It also has an international presence, as its operations are based in Uganda and Kenya.

The company's operations are undertaken under the brands Dodla Dairy, Dodla, and KC+. Their overseas operations are undertaken under the brands Dodla Dairy, Dairy Top, and Dodla+.

Dodla Sunil Reddy, Dodla Sesha Reddy and the Dodla Family Trust are the promoters of the company.

The promoters hold 24,970,631 equity shares, aggregating to 42.81 per cent of the pre-offer issued, subscribed and paid-up equity share capital of the company. Dodla Sesha Reddy holds 556,716 equity shares, Dodla Sunil Reddy holds 8,269,038 equity shares and Dodla Family Trust holds 16,144,877 equity shares in the company.

The company registered EBITDA of Rs 141 crore in the fiscal year 2020, against Rs 134 crore in the previous fiscal year.

Proceeds from the issue will be used for payment of certain borrowings, funding capital expenditure requirements of the company, and for general corporate purposes.

The equity shares of both companies will be listed on NSE and BSE.