Moneycontrol PRO
Upcoming Webinar:Watch Kushal Bhagi of Tortuga Wealth Managers decode how you can maximise your MF investments on Sept 21 @11am. Register Now

Subscribe to Dodla Dairy: Choice Equity Broking

Choice Equity Broking has come out with its report on Dodla Dairy. The research firm has recommended to ''Subscribe'' the ipo in its research report as on June 15, 2021.

June 15, 2021 / 04:46 PM IST
  • bselive
  • nselive
Todays L/H

Choice Equity Broking IPO report on Dodla Dairy

Dodla Dairy Ltd. (DDL), one of the largest dairy companies in India is planning to raise up to Rs. 520cr through an IPO, which opens on 16th Jun. and closes on 18th Jun. 2021. The price band is Rs. 421 - 428 per share. The issue is a combination of fresh issue and OFS. The company will not receive any proceeds from the OFS portion. Of the net proceeds from the fresh issue, Rs. 32.3cr will be utilized to repay or prepayment of debt availed by the company and Rs. 7.2cr will be used to fund incremental capex requirement. Residual funds will be used for general corporate purposes. On 2nd Feb. 2021, the company executed a private placement, allocating 0.265cr shares to International Finance Corporation at Rs. 377. Further, on 11th Jun. 2021, few members of the promoter group transferred 0.097cr shares to SBI Mutual Fund at a price of Rs. 411.5.

Valuation and Outlook

With rising health awareness post the pandemic, changing demographics and rising preferences for packed & branded milk products, the demand of milk & milk products are likely to continue to be strong. Additionally, the improved demand from hotels, restaurants and cafes post pandemic would further aid growth of the dairy sector. DDL being one of the largest players in South India with integrated operations and wide product portfolio is expected to benefit from the same. Thus considering the above observations we assign a “SUBSCRIBE” rating for the issue.

For all IPO stories, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark