Dodla dairy files papers for an IPO with SEBI to raise Rs 800 Crores
Dodla Dairy compares itself with listed companies namely Hatsun Agro Products, Heritage Foods and Parag Milk Foods.
South-based dairy company Dodla Dairy has filed draft red herring prospectus with the capital market regulator Sebi, for its initial public offering. A source close to the developments said the issue size could be around Rs 800 crore.
The public issue comprises a fresh issue of up to Rs 50 crore by the company and an offer for sale of up to 1,00,85,444 equity shares by promoters and an investor, said the company in its DRHP filed on February 15.
The offer for sale consists of up to 83 lakh shares by TPG Dodla Dairy Holdings, 4,16,604 equity shares by promoter Dodla Sunil Reddy, 10,41,509 equity shares by promoter Dodla Family Trust, and 3,27,331 equity shares by promoter Dodla Deepa Reddy.
The company will utilise net fresh issue proceeds for repayment of debt and capital expenditure. It had also filed IPO papers in 2018 to raise around Rs 500 crore.
Dodla Dairy is an integrated dairy company based in south India primarily deriving all of revenue for FY20 and H1FY21 from the sale of milk and dairy based value added products (VAPs) in the branded consumer market.
Amongst private dairy players with a significant presence in the southern region of India, it is the third highest in terms of milk procurement per day with an average procurement of 1.02 million litres of raw milk per day (MLPD) as of December 2020 and second highest in terms of market presence across all of India amongst private dairy players with a significant presence in the southern region of India, says CRISIL Report.
Its operations in India are primarily across the five Indian states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra, while overseas operations are based in Uganda and Kenya.
Its revenue from sale of milk and dairy-based VAPs constituted 72.81 percent and 27.18 percent, respectively, to revenue in FY20, and 74.45 percent and 25.55 percent, respectively, for the six months period ended September 2020.