Dodla Dairy
Mainboard₹520 Cr issue
+23.36%
Listing gain over issue price
Issue size
₹520 Cr
1 lot at cut-off
₹14,980
Lot size
35shares
Open
16 Jun 2021
Close
18 Jun 2021
Allotment
23 Jun 2021
Listing
28 Jun 2021
Listing performance
Issue price
₹428
Listed at
₹528
Listing-day close
₹609.90
Latest price
₹971.40
Close on 23 Oct 2026
Listing gain
+23.36%
Return since issue
+126.96%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Jun 2021 – 18 Jun 2021
- Listing date
- 28 Jun 2021
- Face value
- ₹10 per share
- Issue price
- ₹428 per share
- Lot size
- 35 shares
- Total issue size
- ₹520 Cr
- Market cap at offer price
- ₹2,546 Cr
- Promoter holding
- 66.85% → 65.50% pre-issue → post-issue
- ISIN
- INE021O01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- 8-2-293/82/A/270-Q, Road No.10-C, Jubilee Hills, Hyderabad, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 36,46,099 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 35 shares per lot, in multiples, at ₹428
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 35 | ₹14,980 |
| Retail (max) | 13 | 455 | ₹1,94,740 |
| S-HNI (min) | 14 | 490 | ₹2,09,720 |
| S-HNI (max) | 66 | 2,310 | ₹9,88,680 |
| B-HNI (min) | 67 | 2,345 | ₹10,03,660 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
36,46,099
Anchor portion
₹156 Cr
at ₹428 per share
Valuation and performance
Valuation at offer price
₹428 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹2,546 Cr |
About Dodla Dairy
Dodla Dairy Limited (DDL) is an integrated dairy company incorporated in India on May 15, 1995, primarily operating in southern India (Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka). The company derives substantially all its revenue from the sale of milk and dairy-based value-added products (VAPs) such as curd, ghee, paneer, butter, buttermilk, and ice cream in the branded consumer market. As of December 31, 2020, DDL procured approximately 1.02 million litres of raw milk per day from approximately 109,670 farmers through 6,771 Village Level Collection Centres, 232 dairy farms, and third-party suppliers. The company operates 13 processing plants and 94 chilling centres across southern India and is the third highest in terms of milk procurement per day among private dairy players with significant presence in southern India and second highest in terms of market presence across all of India amongst such players.
Company Analysis
from RHPDodla Dairy Limited is an integrated dairy company based in south India that derives revenue from the sale of milk and dairy-based value-added products in the branded consumer market.
Dodla Dairy Limited (DDL) is an integrated dairy company incorporated in India on May 15, 1995, primarily operating in southern India (Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka). The company derives substantially all its revenue from the sale of milk and dairy-based value-added products (VAPs) such as curd, ghee, paneer, butter, buttermilk, and ice cream in the branded consumer market. As of December 31, 2020, DDL procured approximately 1.02 million litres of raw milk per day from approximately 109,670 farmers through 6,771 Village Level Collection Centres, 232 dairy farms, and third-party suppliers. The company operates 13 processing plants and 94 chilling centres across southern India and is the third highest in terms of milk procurement per day among private dairy players with significant presence in southern India and second highest in terms of market presence across all of India amongst such players.
Dairy and dairy products manufacturingFood and beverageConsumer goods
Objects of the Issue
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company from ICICI Bank Limited, the Hongkong and Shanghai Banking Corporation Limited and HDFC Bank Limited ₹322.64 million p.12
- Funding incremental capital expenditure requirements of our Company ₹71.51 million p.12
- General corporate purposes ₹105.85 million p.12
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company from ICICI Bank Limited, Hongkong and Shanghai Banking Corporation Limited and HDFC Bank Limited ₹322.64 million p.71
- Funding capital expenditure requirements of the Company for automation equipment and processing plant enhancements ₹71.51 million p.71
- General corporate purposes ₹105.85 million p.79
- Funding of capital expenditure towards expansion of existing processing plants, setting up of new chilling centres and purchase of GPRS analysers ₹540.89 million (planned for Fiscal 2021) p.258
- General corporate purposes To the extent permitted by applicable law and regulations p.258
Issue Structure
- Total Issue
- ₹5,201.77 million
- Fresh Issue
- ₹500 million (1,168,224 equity shares)
- Offer for Sale
- ₹4,701.77 million (10,985,444 equity shares)
- Price Band
- ₹421 - ₹428 per equity share
- Lot Size
- 35 equity shares and multiples of 35 thereafter
- Face Value
- ₹10 per equity share
Business Model
DDL earns revenue primarily from the sale of processed milk (standardised milk, full cream milk, toned and double toned milk) and value-added dairy products (curd, skimmed milk powder, ghee, paneer, butter, buttermilk, ice cream) to the branded consumer market through a distribution network of third-party agents, distributors, and franchisees operating Dodla Retail Parlours across eleven states in India.
Business Segments
Processing and distribution of milk and milk products through distribution agents, distributors, and franchisees
Pasteurised and packaged milk in full cream, standardised, toned and double toned variants sold in pouches
Includes curd, UHT milk, ghee, butter, flavoured milk, ice cream, paneer, buttermilk, lassi, and milk-based sweets
Manufactured cattle feed sold to farmers through procurement network under 'Orga' brand by subsidiary Orgafeed Private Limited
Manufacturing, processing, producing, preserving, canning, bottling, making, packing and distribution of milk, evaporated milk, powdered milk, butter, cheese, cream and all types of milk products including dairy whitener, non-dairy whitener, infant milk formulas and casein
Carry on animal husbandry and conduct research in livestock, animal nutrition and process animal feed, milk and milk based products, develop new procurement processes, new milk selling techniques and improvements, collect, process milk or milk based products
Processing and sale of milk and milk products including liquid milk and curd
Manufacturing of cattle feed for captive consumption and external sale through subsidiary Orgafeed Private Limited
Processing and sale of retail milk in various forms: full cream, standardised, toned and double toned milk
Manufacturing and sale of value-added products including curd, ghee, sterilized flavored milk, butter, buttermilk, ice cream and UHT milk
Processing and distribution of packaged milk and dairy VAPs including extended shelf-life milk and yogurt through operations in Uganda and Kenya
Manufacturing and sale of cattle feed to farmers through procurement network; operated through subsidiary Orgafeed Private Limited
SWOT Analysis
Strengths
- • Third-largest milk procurement among private dairies in southern India(p.12)
- • Second-largest market presence among private dairies in southern India(p.12)
- • Strong supply chain network of farmers and collection centers(p.21)
- • Established relationships with dairy farmers built through engagement and support(p.21)
- • Diversified product portfolio across dairy and value-added products(p.30)
- • Integrated business model with procurement, processing and distribution capabilities(p.83)
- • Diverse product portfolio under Dodla Dairy and Dodla brands(p.83)
- • Focused engagement and long-term relationships with dairy farmers(p.83)
- • Stringent quality control procedures(p.83)
- • Third largest milk procurement among southern private dairy players with strong direct farmer engagement(p.128)
- • Integrated business model from procurement to distribution with 92.75% direct farmer procurement(p.130)
- • Strong quality certifications across processing plants (ISO 22000:2018, FSSC V 4, AGMARK)(p.130)
- • Consistent financial growth with revenue CAGR of 15.98% over FY18-FY20(p.131)
- • Experienced management with 20+ years average dairy industry experience(p.132)
- • Strong brand presence in southern India with 393 Dodla Retail Parlours as of March 31, 2021(p.129)
- • High return on capital employed (17.01%) and return on equity (11.50%) in FY2020(p.131)
- • Extensive regulatory compliance framework across multiple jurisdictions(p.151)
- • Established business history and operational scale(p.154)
- • Multiple production facilities across key regions(p.155)
- • Award-winning operational practices(p.155)
- • Strong financial backing from institutional investors(p.160)
- • Experienced management with deep sector knowledge(p.176)
- • Established business combination infrastructure and processing assets(p.231)
- • Strong market presence through multiple geographies via subsidiaries(p.222)
- • Diversified product portfolio in dairy and feed processing(p.226)
- • Significant tangible asset base including property, plant and equipment(p.206)
- • Third-highest raw milk procurement among southern private dairies with 1.03 MLPD as of March 31, 2021(p.241)
- • Second-highest market presence across India among southern private dairies(p.241)
- • Promoters have 22+ years of dairy industry experience; CEO has 35+ years(p.242)
- • Reduced dependence on third-party suppliers from 13.58% to 5.65%(p.241)
- • Significant increase in VLCC network from 3,544 to 6,285 between March 2018 and March 2020(p.241)
- • Expanded installed processing capacity from 1.29 MLPD in Fiscal 2018 to 1.70 MLPD in Fiscal 2021(p.241)
- • Strong profitability with 21.17% return on net worth for 9-month period ended December 31, 2020(p.240)
Weaknesses
- • Dependency on informal supply arrangements with no formal contracts for raw milk(p.21)
- • Geographic concentration of operations in southern India creates regional dependency(p.23)
- • Material past compliance failures and inadequate internal controls(p.25)
- • Subsidiaries have incurred historical losses(p.28)
- • High debt levels with covenant breach history(p.26)
- • Reliance on non-contracted distribution partners without long-term commitments(p.37)
- • Multiple regulatory and environmental non-compliances at processing facilities(p.26)
- • High levels of outstanding receivables from third-party distribution agents and franchisees(p.38)
- • Default risk on payments from third-party agents, distributors and franchisees(p.38)
- • Unregistered brand 'Dairy Top' in India limiting trademark protection(p.41)
- • Promoter control limits minority shareholder influence(p.38)
- • Geographic concentration of operations primarily in southern India limits national reach(p.128)
- • Lower EBITDA margins (6.6%) compared to peers in FY2020(p.125)
- • Low capacity utilization at some processing plants (Hyderabad at 47%, Rajahmundry at 24%, Vedasandur at 9% in FY2021)(p.138)
- • Overseas operations in Africa contribute minimally with Uganda processing only 0.30 MLPD(p.137)
- • Emerging value-added products segment experienced -10% decline in FY2021 due to COVID-19(p.99)
- • High debt obligations secured by guarantees from promoter(p.156)
- • Concentration of promoter shareholding with investor put-option rights(p.160)
- • Significant equity commitments restricting strategic flexibility(p.160)
- • Loss-making group companies creating drag on consolidated performance(p.184)
- • Dependence on international operations in politically uncertain regions(p.158)
- • High debt burden relative to equity(p.230)
- • Covenant non-compliance history with lenders(p.214)
- • Significant contingent liabilities from tax disputes(p.221)
- • Dependence on director's personal guarantee for borrowings(p.214)
- • Impaired investment in associate company(p.210)
- • High reliance on few major customers for milk and dairy product sales(p.259)
- • Contingent liabilities of ₹165.55 million including indirect tax matters of ₹164.56 million(p.258)
- • Significant pending litigation including labor and food safety matters(p.265)
- • Multiple processing plants concentrated in southern states with limited geographic diversification(p.241)
- • Relatively low profitability with profit margin declining from 3.69% in Fiscal 2019 to 2.32% in Fiscal 2020(p.250)
Opportunities
- • Expanding direct procurement model and farmer engagement programs(p.27)
- • Growing consumer preference for value-added dairy products(p.12)
- • Expansion into organized retail and modern trade channels(p.37)
- • Organic and inorganic growth through new processing plants and markets(p.32)
- • Rising household consumption and market share of dairy products(p.12)
- • Rising per capita income and consumption patterns shifting toward nutritious dairy products(p.92)
- • Large vegetarian population dependent on dairy for protein(p.93)
- • Increasing urban population driving dairy consumption(p.92)
- • Favorable demographic dividend with young population(p.91)
- • Dairy products accounting for significant share of food expenditure(p.93)
- • Capital expenditure investments for automation and processing capacity(p.77)
- • Indian dairy industry projected to grow at 10-11% CAGR from FY21-25 with VADPs growing faster at 14-16%(p.98)
- • Organized segment expected to grow faster at 12-13% versus unorganized at 8-10%, creating consolidation opportunity(p.101)
- • Rising vegetarian population (from 25% in 2004 to 28% in 2018) increases demand for milk as protein source(p.103)
- • QSR industry expected to grow at 15-16% CAGR boosting dairy product demand(p.103)
- • Government initiatives including 100% FDI in dairy, Rs.150 billion dairy infrastructure fund and National Dairy Plan 2 support sector growth(p.103)
- • Shift from loose to packaged milk creating opportunity for organized players (projected from 26% to 74% by FY24-25)(p.106)
- • African dairy market has massive growth potential with low yields and high import dependency(p.126)
- • Regulatory incentive for FDI in animal husbandry sector(p.152)
- • Expansion into adjacent value-added products and services(p.154)
- • Research and development in livestock and dairy products(p.154)
- • Geographic expansion through established subsidiary network(p.155)
- • Investment in large-scale dairy farms and vertical integration(p.155)
- • Capacity expansion through capital work-in-progress(p.206)
- • Growth through strategic acquisitions and business combinations(p.230)
- • Expansion of international operations(p.226)
- • Government support and subsidies for dairy infrastructure(p.215)
- • Expansion of distribution network with planned capital expenditure of ₹540.89 million for new processing plants and chilling centers(p.258)
- • Growing demand for dairy products in southern India with increasing retail presence through 393 Dodla Retail Parlours(p.241)
- • Significant growth in value-added products revenue from ₹4,452.03 million in Fiscal 2019 to ₹5,641.47 million in Fiscal 2020(p.252)
- • Overseas expansion potential in Africa through subsidiaries in Uganda and Kenya with ongoing infrastructure development(p.242)
- • Strong cash generation from operations with ₹1,954.15 million net cash from operations in 9-month period ended December 31, 2020(p.256)
Threats
- • Dependence on raw milk supply subject to seasonal, environmental and disease factors(p.21)
- • COVID-19 pandemic has caused significant business disruption and uncertainty(p.22)
- • Intense competition from larger multinational companies and cooperatives with subsidies(p.29)
- • Government subsidies and support to dairy cooperatives disadvantage private players(p.27)
- • Regulatory and compliance risks including food safety violations and penalties(p.23)
- • Perishability of products creates inventory and shelf-life management risks(p.23)
- • Price volatility of raw materials and inability to pass costs to customers(p.21)
- • Seasonal mismatch between milk supply and product demand(p.23)
- • Exposure to multiple complex tax regimes in multiple jurisdictions(p.38)
- • Changes in tax laws and GST regime creating uncertainty(p.42)
- • Potential labor unrest and disruptions from employee disputes(p.39)
- • Exposure to foreign currency exchange rate fluctuations(p.41)
- • Macroeconomic shocks and slowdown impacting consumption(p.43)
- • Competitive pressure and acquisition-related risks under Competition Act(p.43)
- • Natural calamities and disruptions(p.44)
- • Volatility in milk procurement prices driven by fodder costs and adverse environmental conditions(p.119)
- • Seasonal supply of milk with buffalo milk production dropping to one-third during summers affecting supply consistency(p.119)
- • Intense competition from cooperatives with state subsidies limiting pricing power of private players(p.101)
- • Regional dominance of cooperatives (Amul with 90-95% market share in Gujarat) creating high barriers to entry(p.101)
- • Low shelf life of dairy products and high perishability limits distribution reach beyond regional markets(p.102)
- • Competition from large multinational companies with greater resources and brand presence(p.133)
- • SMP inventory buildup and sluggish exports due to low global prices affecting segment profitability(p.108)
- • Complex multi-jurisdictional environmental and regulatory compliance requirements(p.151)
- • Stringent pollution control standards with high penalties for non-compliance(p.151)
- • Mandatory waste management and environmental authorization requirements(p.151)
- • Evolving environmental impact assessment requirements adding operational burden(p.151)
- • Foreign operations exposed to geopolitical and regulatory instability(p.152)
- • Exposure to foreign exchange volatility(p.230)
- • Interest rate risk from variable rate borrowings(p.230)
- • Liquidity risk and refinancing requirements(p.229)
- • Regulatory and tax compliance challenges(p.239)
- • Supply chain and operational disruptions from external factors(p.220)
- • Commodity price risk from fluctuations in raw milk, processed milk and dairy product prices(p.259)
- • Foreign exchange risk from overseas operations in Uganda and Kenya(p.259)
- • High inflation in India could impact overall business and operations(p.259)
- • Interest rate risk from long-term and short-term borrowings with variable rates(p.259)
- • Pending arbitration award by ICAMEK directing Lakeside Dairy to pay US$397,800 compensation in dispute with M/s Midland Emporium(p.268)
- • Liquidity risk requiring the company to ensure sufficient liquidity to meet obligations under normal and stressed conditions(p.259)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dodla Sunil Reddy | Promoter | 14.18% | — |
| Dodla Sesha Reddy | Promoter | 0.95% | — |
| Dodla Family Trust | Promoter | 26.69% | — |
| Dodla Sunil Reddy | Promoter | 14.18% | 13.89% |
| Dodla Family Trust | Promoter | 26.69% | 26.16% |
| Dodla Sesha Reddy | Promoter | 0.95% | 0.93% |
| Dodla Deepa Reddy | Promoter Group | 12.16% | 11.92% |
| Dodla Sesha Reddy | Promoter/Chairman | — | — |
| Dodla Sunil Reddy | Promoter/Managing Director | — | — |
| Dodla Sunil Reddy | Promoter | 14.17% | — |
| Dodla Sesha Reddy | Promoter | 0.95% | — |
| Dodla Family Trust | Promoter | 26.70% | — |
| D. Sunil Reddy | Promoter | 7.21% | — |
| D. Deepa Reddy | Promoter | 1.52% | — |
| D. Sesha Reddy | Promoter | 1.00% | — |
| Dodla Family Trust | Promoter Group | 29.00% | — |
| Sunil Reddy (HUF) | Promoter Group | 19.48% | — |
| Mylktree Consultants LLP | Promoter Group | 12.57% | — |
| TPG Dodla Dairy Holdings Pte. Ltd. | Investor | 27.00% | — |
| Dodla Sesha Reddy | Promoter | — | — |
| Dodla Sunil Reddy | Promoter | — | — |
| Dodla Family Trust | Promoter Group | — | — |
| The RISE Fund (TPG Growth) | Investor/Shareholder | — | — |
| International Finance Corporation | Lender and Shareholder | — | 4.55% |
| Dodla Sunil Reddy | Promoter/Managing Director | — | — |
| Dodla Sesha Reddy | Promoter/Chairman | — | — |
| Dodla Family Trust | Promoter Selling Shareholder | — | — |
| Dodla Deepa Reddy | Promoter Group Selling Shareholder | — | — |
Leadership
Dodla Sesha Reddy · Chairman
Dodla Sunil Reddy · Managing Director
Anjaneyulu Ganji · CFO
Ruchita Malpani · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Dodla Dairy IPO FAQs
What is the lot size of Dodla Dairy IPO?
The minimum lot size of Dodla Dairy IPO is 35 shares. One lot costs ₹14,980 at the cut-off price.
When does Dodla Dairy IPO open and close?
Dodla Dairy IPO opened for subscription on 16 Jun 2021 and closed on 18 Jun 2021.
What is the listing date of Dodla Dairy IPO?
Dodla Dairy IPO listed on 28 Jun 2021.