Invest in IPO of dodla dairy with GEPL IPO portal.

IPO News 16 June 2021 2:13:PM

Dodla-Dairy-IPO-GEPL-IPO-PORTAL Dodla-Dairy-IPO-GEPL-IPO-PORTAL

IPO of Dodla dairy is all set to go live for subscription from tomorrow that is 16th June 2021 to 18th June 2021. With the book build issue type IPO, the price of dodla dairy IPO is Rs.421 to 428 per equity per share. The face value of this IPO is Rs. 10 per equity share with a Market lot of 35 shares. As per today's data, While IPO investors examine the company's fundamentals, the Dodla Dairy IPO GMP (Grey Market Premium) has surged to 180 today. According to analysts, the Dodla Dairy IPO's high GMP number indicates that the market is bullish on the public offering. (Mint)  Before looking at other important aspects of the dodla dairy IPO let's take a look at the company profile. 

How to invest in Dodla Dairy IPO? 

You can invest in the IPO of Dodla Dairy via the GEPL Capital IPO portal with 2 easy steps. Click here to apply with your valid UPI ids.  

Company Profile Of Dodla Dairy:- 

Dodla Dairy Limited, founded in 1995, is a South Indian integrated dairy firm that specializes in the sourcing, processing, distribution, and marketing of milk and other dairy products. It processes and sells milk, including standardized, toned, and double toned milk, as well as curd, butter, ghee, ice cream, and flavored milk, among other dairy products.

It primarily operates in India under the brand names "Dodla," "Dodla Dairy," and "KC+," while serving the international market under the brand names "Dodla Dairy," "Dairy Top," and "Dodla+." The company primarily serves the Indian market segments of Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra, as well as the international market segments of Uganda and Kenya.

It operates 13 processing plants that convert raw milk into packaged milk and produce dairy-based value-added goods. The company has a strong distribution network that spans 11 Indian states and includes 40 sales offices, 3336 distribution agents, 863 milk distributors, and 449 product distributors.

Strengths of Dodla Dairy:- 

An integrated business model with well-defined procurement, processing, and distribution capabilities

  • As of March 31, 2021, Dodla Dairy operates more than 283 milk procurement routes. These routes have a regular procurement plan with timely pick up of raw milk from VLCCs and dairy farms and transport to the nearest chilling centers.

newipo

Long term relationship with dairy farmers???????:-

  • Their VLCCs are equipped with GPRS-enabled milk analyzers and weigh scales which provide a transparent acknowledgment for quantity and quality components for the milk supplied by the farmers. They also work with regional banks and facilitate sanctioning of loans to farmers which they utilize to invest in their cattle.
  • They have also diversified into an ingredient input providing company by supplying upfront cattle feed under the “Orga” brand, manufactured by their Subsidiary Orgafeed Pvt. Ltd., directly to their farmers through their procurement network which is adjusted against the value of the raw milk supplied to them by such farmers. They have tied up with various veterinarians to provide services to farmers for their milch animals. They also organize various training camps with veterinarians for farmers to educate them about the best ways to prevent common ailments for their milch animals.

Increase the revenues from dairy-based VAPs:-

  • Historically, sales of processed milk have been their primary revenue driver. In order to grow further and also increase margins, over the last few years they have focused on dairy-based VAPs. They intend to supplement their revenue by increasing the sales of their VAPs and strike a balance between processed milk and VAPs to optimise their product portfolio. While their current product portfolio includes curd, they propose to introduce new variants of cheese and other products at price points as low as ?10, to expand their product portfolio and reach a wider variety of consumers.

Strengthen the procurement and processing operations:-

  • They intend to continue to (i) adopt a more efficient production process to decrease milk reprocessing and reduce their water use; (ii) decrease the electricity consumption due to refrigeration by refining the current plant and machinery; and (iii) switch from conventional to non-conventional sources of energy. Further, they continue to invest in modern technology and equipment to address changing customer preferences as well as to improve operational efficiencies.
  • They have acquired plants, including, in Fiscal 2016, a processing plant in Dharmapuri, Tamil Nadu which provided them access to the markets in central and southern Tamil Nadu. In Fiscal 2013, they acquired a processing plant in Kurnool. They commenced operations at their new processing plant in Rajahmundry, Andhra Pradesh, in April 2019, which provided them access to the markets of coastal Andhra Pradesh.
  • Dodla Dairy entered into a business transfer agreement with KC Dairy Products Pvt. Ltd. and Chellamuthu Sureshkumar on February 8, 2019 (“BTA”). Pursuant to the BTA, the company has acquired 2 new processing plants at Vedasandur and Batlagundu in Tamil Nadu and 1 SMP plant at Vedasandur.
  • In Fiscal 2019 they, through their Subsidiary Orgafeed Pvt. Ltd., acquired the cattle feed and mixing plant in Andhra Pradesh for the purpose of manufacturing and selling cattle feed to farmers through their procurement network.

Important details about Dodla Dairy IPO:- 

IPO opens on June 16th, 2021 
IPO Closes on June 18th, 2021 

Issue Type

Book Built 
Face Value Rs. 10 per equity share.

IPO Price

Rs. 421 to Rs. 428 per equity share.

Market Lot

35 Shares 

Min Order Quantity

35 Shares.

Listing At

BSE/NSE

Issue Size

Eq Shares of Rs.10
(aggregating up to Rs.520.18 Cr)

Fresh Issue

Eq Shares of Rs,10
(aggregating up to Rs.50.00 Cr)

Offer for Sale

10,985,444 Eq Shares of ?10
(aggregating up to Rs.470.18 Cr)

Valuation & Recommendation for Dodla Dairy IPO

The issue is priced at a post-issue annualized PE of ~16.5x on FY21 EPS. We believe that the uptick in margins in 9MFY21 will normalize to around 10 – 11% as guided by the management. The focus on VAP (Value Added Products) also is a positive sign. The unorganized / smaller dairies are also impacted due to liquidity issues and a weaker balance sheet. The organized sector will continue to structurally gain market share. The key downside risk, however, includes a sharp rise in raw material costs. We recommend a SUBSCRIBE rating to the issue.

If you want to invest in this IPO then click here. We have made it easier for you to invest in IPOs like Dodla Dairy. With the 2 easy steps and Valid UPI ids, you can invest. Visit GEPL IPO Portal to invest. To open a Demat account click here. To Explore more investment opportunities click here. 

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