Dodla Dairy IPO

Dodla Dairy Ltd.

₹14,735 /35 sharesMinimum Investment

Dodla Dairy IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
16 Jun ‘21 - 18 Jun ‘21₹14,73535₹421 - ₹428
Issue SizeIPO Doc
520.18Cr
RHP PDF

Subscription Status As on 18 Jun '21, 4:50 PM

  • Retail Individual Investor
    11.33x
  • Non-Institutional Investor
    73.26x
  • Qualified Institutional Buyers
    84.88x

About Dodla Dairy

Dodla Dairy Limited is an integrated dairy company based in South India primarily deriving its revenue from the sale of milk and dairy-based value-added products in the branded consumer market. The company has operations primarily across Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra. It also has overseas operations in Uganda and Kenya. Dodla Dairy is the third-highest player in terms of milk procurement among private players. It has an average procurement of 1.02 million litres of milk every day. It is also the second-highest player in terms of market presence across all of India among private dairy players with a significant presence in South India. ;
Parent Organisation
Dodla Dairy Ltd.
Founded
1995
Managing Director
Dodla Sunil Reddy
Dodla Dairy IPO review - Price, business, financials, IPO details | Upcoming IPO 2021

Strengths & Risks

  • Consumer-focused dairy company with a diverse range of products under the “Dodla Dairy” and “Dodla” brands.
  • Integrated business model with well-defined procurement, processing, and distribution capabilities.
  • Stringent and well-defined, quality and food safety procedures at various stages from procurement to distribution of its products.
  • Delivered consistent growth over the last three financial years both in terms of financial and operational metrics.
  • Dependant on the supply of large amounts of raw milk.
  • COVID-19 pandemic and other health concerns that may impact the procurement, distribution, or sale of milk.
  • Contamination of milk or product tampering resulting in a legal liability.
  • Seasonal change in the demand and supply of milk and its inability to forecast it accurately.
  • Procurement and processing are primarily based in South India. Hence, any adverse developments in this region can potentially impact its operations.
  • Inability to service existing debt agreements.
  • Competitive market.
  • Certain financing arrangements have variable interest rates.
  • Its subsidiaries, OPL and Dodla Kenya have incurred losses in the past.
  • The company has certain contingent liabilities.
  • Improper storage or handling of the raw milk or finished products (since they are perishable).
  • Pending legal proceedings against the promoters Dodla Sunil Reddy and Dodla Sesha Reddy.
  • Adapting to changing consumer preferences.
  • Inability to procure the desired quantity and quality of raw materials.
  • No long-term agreements with most customers.
  • Outstanding litigation proceedings against the company and its directors.

Financials

*All values are in Rs. Cr
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Application details

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