News Update

Dodla Dairy Makes Debut Lists At Over 28 % Premium

• ByStartupStory     |    June 28, 2021

Dodla Dairy, which recently concluded its IPO, on Monday made a strong debut on domestic stock exchanges. Dodla Dairy shares began trading at ₹550 per share on the National Stock Exchange of NSE and were up ₹122 or 28.50 per cent as compared to the issue price of ₹428 apiece. On BSE, Dodla Dairy shares get listed at ₹528 apiece, rising ₹100 or 23.36 per cent over its IPO price. Dodla Dairy IPO, worth ₹520 crore, was subscribed 45.61 times. Brokerages said investors could subscribe to the Dodla Dairy IPO citing the company’s strong financial performance, reasonable valuations, robust business growth, growth potential and long-term prospects of the domestic dairy industry. The company during 9MFY21 (April to December) witnessed a robust rebound in financial performance, led by healthy improvement in Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin. The profit after tax (PAT) stood at Rs 116 crore in 9MFY21 as against an average annual profit of Rs 0.6 billion over the last three years. Further, operating cash flow (OCF) generation continues to remain steady with a cumulative OCF of Rs 580 crore during FY18-9MFY21.

Dodla Dairy IPO received bids for 38,80,64,950 shares against 85,07,569 shares on offer. The Qualified Institutional Buyers (QIBs) category was subscribed 84.88 times, non-institutional investors 73.26 times and the retail investors (RIIs) segment was subscribed 11.33 times. Dodla Dairy raised ₹156 crore from anchor investors ahead of its IPO. Dodla Dairy IPO comprised a fresh issue of ₹50 crore and an offer for sale of 1,09,85,444 equity shares. The share offering was in a price range of ₹421-428 per share.The company has said that it will use the proceeds from the issue for payment of certain borrowings, funding capital expenditure requirements of the company, and for general corporate purposes. “The sharp gains in EBITDA margins was due to cost-cutting measures implemented to tackle the COVID-19 impact. These heightened margins are unlikely to sustain and management, too, has guided towards normalisation,” analysts at Ventura Securities said in an IPO note.

 

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