The offer comprises a fresh issue of up to Rs 50 crore and sale of up to 1,09,85,444 equity shares
Hyderabad-based Dodla Dairy is planning to open its Rs 520 crore Initial Public Offering on June 16, 2021. It has fixed the price band at Rs 421-428 per share.
The issue will close on June 18.
Dodla Dairy IPO offer comprises a fresh issue of up to Rs 50 crore and an offer for sale of up to 1,09,85,444 equity shares by promoters and investors.
The offer for sale consists of 92 lakh equity shares by investor TPG Dodla Dairy Holdings, and 4,16,604 equity shares by Dodla Sunil Reddy, 10,41,509 equity shares by Dodla Family Trust, and 3,27,331 equity shares by Dodla Deepa Reddy.
The funds raised through the IPO will be utilised for repaying debts of Rs 32.26 crore availed from ICICI Bank, the Hongkong and Shanghai Banking Corporation (HSBC) and HDFC Bank, and around Rs 7.15 crore for capital expenditure requirements.
According to the company's press release, the Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (‘SCRR’) read with Regulation 31 of the Sebi ICDR Regulations and in compliance with Regulation 6(1) of the Sebi ICDR Regulations wherein not more than 50 per cent of the offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the company and the selling shareholders in consultation with the BRLMs may allocate up to 60 per cent of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds (MFs), subject to valid bids being received from the domestic MFs at or above the Anchor Investor Allocation Price in accordance with Sebi ICDR Regulations. 5 per cent of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to MFs only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including mutual funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from MFs is less than 5 per cent of the QIB Portion, the balanced equity shares available for allocation in the MF portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.
As of December 31, 2020, the company had a total debt of Rs 87.37 crore comprising term loans, working capital facilities, and NCDs.
Not less than 15 per cent of the offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35 per cent of the offer shall be available for allocation to RIBs in accordance with the Sebi ICDR Regulations, subject to valid bids being received from them at or above the offer price.
"The cost of production went up following the pandemic leading to around Rs 200 crore or 10 per cent loss of topline. We expect to retain the status quo similar to the previous financial year in 2021-22. The company will continue to target growth of 15-20 per cent going forward," Dodla Dairy Managing Director Sunil Reddy told reporters at a virtual press conference.
He said the company will also consider acquisition if it gets a good value and opportunity in the existing market.