Dodla Dairy, a south-based dairy company, has filed the draft red herring prospectus with market regulator SEBI to raise Rs 800 crore through a public issue. According to reports, the company had filed IPO papers back in 2018 to raise Rs 500 crore.
The IPO comprises fresh issuance of shares worth Rs 50 crore and an offer of sale by promoters aggregating over 1 crore shares. Promoter Dodla Sunil Reddy will offer some 4 lakh shares, promoter Dodla Deepa Reddy will offer over 3.27 lakh shares, and Promoter Dodla Family Trust will offer more than 10 lakh equity shares. TPG Dodla Dairy Holdings will offer another 83 lakh shares for sale.
The company proposes to utilise the money raised through the issue for debt repayment and Capex expenditure.
About the company
Dodla Dairy is an integrated company based out of south India. According to FY20 data, it derives 70 percent revenue from the sale of milk and more than 27 percent revenue from sale dairy-based products in the branded market.
It procures some 1 million litres of raw milk every day as of Dec 2020, which is the third-highest milk procurement in South India. Per a CRISIL report, the company has the second-best brand presence in the country, with a significant presence in southern India.
Its operations are concentrated in five Indian states: Andhra Pradesh, Karnataka, Tamil Nadu, Telangana, and Maharashtra. The company is also present in African countries Kenya and Uganda. IT competes with other listed companies such as Hatsun Agro Products, Parag Milk Foods, and Heritage Foods.
Axis Capital and ICICI Securities are the book running lead managers of the issue.
First Published: Feb 18, 2021 6:05 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
I.N.D.I.A. bloc committed to predictable and stable tax environment: Jairam Ramesh
May 21, 2024 6:33 PM
Exclusive | INDIA bloc will ensure stable policy framework, simple GST, end tax terrorism: Jairam Ramesh
May 21, 2024 5:02 PM
Cong leaders 'failed' to protect party's constitution says FM Nirmala Sitharaman in Bihar
May 21, 2024 4:01 PM
Who will succeed Modi? Oppn thinks Amit Shah will, but PM said this
May 21, 2024 2:38 PM