On June 16, the first day of bidding, Dodla Dairy’s initial public offering was subscribed at 69 percent.
According to subscription data accessible on markets, the offer attracted bids for 56 lakh equity shares, compared to the IPO’s target size of 85.07 lakh equity shares.
The component reserved for regular investors has been subscribed to 1.34 times, while the amount reserved for non-institutional investors has been subscribed to at a rate of 5%.
Qualified institutional purchasers saw a 2% increase in subscriptions.
Dodla Dairy, which is funded by TPG, seeks to raise Rs 520.17 crore at the upper end of its pricing band of Rs 421-428 per equity share. TPG Dodla Dairy Holdings Pte Ltd and promoters are offering a fresh issue of Rs 50 crore and an offer for sale of up to 1,09,85,444 equity shares through the IPO.
The company has grown consistently during the last three fiscal years, both financially and operationally. The company’s debt-to-equity ratio (D/E) has improved over time. As of 9MFY21, the company’s D/E ratio was 0.17, 0.35, 0.39, and 0.37, respectively.
Additionally, Dodla Dairy reduced its receivable days from 1.23 days in FY20 to 0.66 days in 9MFY21, with trade receivables totaling Rs 7.20 crore and Rs 3.39 crore, respectively, in FY20 and 9MFY21.
Dodla Dairy has grown to become one of the most recognised brands in the dairy products business in South India, particularly in the states of Andhra Pradesh, Karnataka, Tamil Nadu, and Telangana.
Numerous brokerages believe that Dodla Dairy has a bright future and is currently trading at a discount to its peers. “As a result, we recommend that investors subscribe to the Dodla Dairy initial public offering,” a brokerage firm stated.
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Smrutirekha Bhoi