The public issue of Dodla Dairy, a private dairy player with a significant presence in the southern part of India, subscribed 3.3 times on June 17, the second day of bidding.
Investors have put in bids for 2.8 crore equity shares
against the IPO size of 85 lakh equity shares, the subscription data available
on the exchanges showed.
Retail investors remained at the forefront as the portion set
aside for them had been subscribed 6.18 times, while the part reserved for
qualified institutional buyers had seen a subscription of 28 percent and
that of non-institutional investors 60 percent.
Dodla Dairy, engaged in the procurement, processing, distribution
and marketing of milk and other value-added products, opened its Rs
520.17-crore public issue on June 16, with a price band at Rs 421-428 an equity
share.
The offer comprises a fresh issue of equity shares aggregating up
to Rs 50 crore and an offer for sale of Rs 470.18 crore by selling
shareholders. The fresh issue proceeds will be used for repaying debt.
The company is the third largest in terms of daily milk
procurement and the second biggest in terms of market presence among private
dairy players.
The Indian dairy industry is expected to grow at
a CAGR of 10-11 percent between FY21 to FY25. Within this, embedded value
products—flavoured milk, ice cream, yoghurt, cheese, whey and others—are
expected to outpace other the segment and grow at 14-16 percent between FY21
and FY25. The company plans to add more milk products.
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