The Hyderabad-based Dodla Dairy will be open for subscription from June 16 and will close on June 18. The company has fixed the issue price band at Rs 421-428 per share.
The public offer comprises a fresh issue of up to Rs 50 crore and an offer for sale of up to 1.09 crore equity shares by promoters and investors. The offer for sale consists of shares of promoters and investors namely TPG Dodla Dairy Holdings, Dodla Sunil Reddy, Dodla Family Trust, and Dodla Deepa Reddy.
What you need to know about this company:
As of March, 31, 2021, the company had a total outstanding indebtedness of Rs 87.3 crore comprising long term borrowings, working capital facilities and NCDs, according to red herring prospectus.
The company plans to utilise the net proceeds for repayment/ pre-payment, in full or part, of certain borrowings availed by the company from ICICI Bank Limited, Hongkong and Shanghai Banking Corporation Limited and HDFC Bank Limited. The remaining proceeds will be used for capital expenditure and other general corporate purposes.
Dodla Dairy is a public limited company that was incorporated in 1995 and production commenced in 1997.
It has distribution and marketing operations consisting of distribution of our products through 40 sales offices, 3,336 distribution agents, 863 milk distributors and 449 milk product distributors across nine states in India.
As of December 31, 2020, their products are also available through 371 ‘Dodla Retail Parlors’ which commenced operations in 2016 and are spread across the states of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka.
The company’s revenue from operations increased at a CAGR of 15.98 per cent over fiscal 2018 to fiscal 2020 and amounted to Rs 21,39.37 crore in fiscal 2020, while the EBITDA increased during the same period at a CAGR of 11.8 1 per cent and amounted to Rs 140.9 crore, the profit after tax amounted to Rs 49.87 crore in fiscal 2020.
The revenue from operations, EBITDA and profit after tax for the nine months period ended December 31, 2020 were Rs 1,413.51 crore, Rs 206.5 crore and Rs 116.38 crore respectively.
The company commissioning a new processing plant at Rajahmundry, acquisition of the processing plants at Batlagundu and Vedasandur from KC Dairy Products Private Limited, acquisition of the cattle feed and mixing plant by Orgafeed Private Limited at Kadapa and establishment of new VLCCs, over the past three years. The cumulative capital expenditure of the same was Rs 264.4 crore in those three years.
The company stated the return on equity and return on capital employed for fiscal 2020 were at 11.50 per cent and 17.01 per cent respectively.
The combined capacity of all the 13 processing and packaging plants is 1.70 million litres of raw milk per day, excluding two skimmed milk powder (SMP) plants which have an installed capacity of 25,000 kgs per day.