Dodla Dairy IPO: Dodla Dairy IPO subscribed 5.7 times so far on Day 3

NEW DELHI: The initial public offer (IPO) of Dodla Dairy witnessed strong demand from investors as the issue was subscribed nearly six times on Friday, the last day of the bidding process. The issue was fully subscribed on Wednesday.

According to data available with NSE, the IPO attracted bids for 4,87,34,525 shares by 12.50 pm, which meant a 5.73 times subscription against the total issue of 85,07,569 shares. The metal producer has fixed the price band at Rs 421-428 for the IPO.

Dodla Dairy is raising Rs 520 crore via its primary float. The issue comprises an offer for sale of up to Rs 470 crore and fresh issuance of shares worth up to Rs 50 crore. The issue will close for subscription later in the day.

At the upper end of this price band, the company is demanding a post-issue annualised FY21 PE of 16.4 times. The asking valuations are at par with Heritage Food and lower than those of peers Parag Milk Foods and Hatsun Agro.

Dodla Dairy had said on Tuesday that it had raised over Rs 156 crore from anchor investors ahead of its IPO, allocating a total of 36,46,099 equity shares at Rs 428 apiece.

The South India-based dairy company had on February 2 this year executed a private placement, allocating 26.5 lakh shares to International Finance Corporation at Rs 377 apiece.

Dodla Dairy is the third largest player in terms of milk procurement per day, with an average procurement of 1.03 million litres of raw milk per day (MLPD) as of March 31, 2021.

The company’s processing operations are spread across 13 processing plants located in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, with an aggregate installed capacity of 1.70 MLPD.