Dindigul Farm Product
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Jun 2024 – 24 Jun 2024
- Listing date
- 27 Jun 2024
- Face value
- ₹10 per share
- Issue price
- ₹54 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹34.83 Cr
- Market cap at offer price
- ₹132 Cr
- Promoter holding
- 80.66% → 59.36% pre-issue → post-issue
- ISIN
- INE0S6R01027
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- 2/52-3, Pillaiyarnatham Pithalaipatty, Post, Tamil Nadu
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 | 18,34,000 | — | — |
| Market maker | 3,26,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹54
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.92 | 3.21 |
| P/E (×) | 18.49 | 16.82 |
| Price to book (×) | 23.58 | — |
| Market cap | — | ₹132 Cr |
Key performance indicators
- Return on net worth
- 149.36%
- ROCE
- 62.00%
- Debt / equity
- 4.63
- PAT margin
- 8.57%
- EBITDA margin
- 13.60%
- NAV per share
- ₹2.29
- Price to book
- 23.58
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Dindigul Farm Product
Dindigul Farm Product Limited (DFPL) was incorporated on September 29, 2010 as Dindigul Farm Product Private Limited and converted into a public limited company in December 2023. Established in 2010, the company is primarily engaged in processing whole milk and skimmed milk to make dairy ingredients including milk protein concentrates, skimmed milk powder, dairy whitener, whey protein concentrate, milk whey powder, casein, unbranded cream and butter and fat filled powders for infant milk formula, at its owned processing facility spread over 15 acres in Dindigul, Tamil Nadu. It procures approximately 50,000 litres of milk per day directly from farmers via a network of more than 150 village collection centres (direct access to more than 4,000 farmers and more than 50 dairy farms) and around 30,000–1,00,000 litres per day of whole milk from the open market or third-party suppliers, while skimmed milk is procured majorly from its Group Company A R Dairy Food Private Limited. It markets products under the ENNUTRICA and ActivDay brands, supplying customers in the dairy, food ingredients, nutrition, ice cream and baking industries; in fiscal 2023 it sold products in more than 15 states domestically and 3 countries internationally (exports to Poland, Sri Lanka and Vietnam). Its management system complies with FSSC 22000 and it follows FSSAI, Halal, Kosher, EIC/Europe Regulations requirements and holds APEDA registration. Revenue from operations was ₹8,157.74 lakhs in FY2023 (restated PAT ₹516.67 lakhs) and ₹6,874.75 lakhs for the nine months ended December 23, 2023 (restated PAT ₹588.89 lakhs). Through this IPO of 64,50,000 fresh equity shares on the BSE SME platform, it proposes to fund capital expenditure (plant and machinery), working capital and general corporate purposes.
Company Analysis
from RHPDindigul Farm Product Limited processes whole milk and skimmed milk into dairy ingredients — including milk protein concentrates, skimmed milk powder, dairy whitener, whey protein concentrate, milk whey powder, casein, unbranded cream and butter, and fat filled powders for infant milk formula — marketed under the EnNutrica and ActivDay brands to the dairy, food ingredients, nutrition, ice cream and baking industries.
Dindigul Farm Product Limited (DFPL) was incorporated on September 29, 2010 as Dindigul Farm Product Private Limited and converted into a public limited company in December 2023. Established in 2010, the company is primarily engaged in processing whole milk and skimmed milk to make dairy ingredients including milk protein concentrates, skimmed milk powder, dairy whitener, whey protein concentrate, milk whey powder, casein, unbranded cream and butter and fat filled powders for infant milk formula, at its owned processing facility spread over 15 acres in Dindigul, Tamil Nadu. It procures approximately 50,000 litres of milk per day directly from farmers via a network of more than 150 village collection centres (direct access to more than 4,000 farmers and more than 50 dairy farms) and around 30,000–1,00,000 litres per day of whole milk from the open market or third-party suppliers, while skimmed milk is procured majorly from its Group Company A R Dairy Food Private Limited. It markets products under the ENNUTRICA and ActivDay brands, supplying customers in the dairy, food ingredients, nutrition, ice cream and baking industries; in fiscal 2023 it sold products in more than 15 states domestically and 3 countries internationally (exports to Poland, Sri Lanka and Vietnam). Its management system complies with FSSC 22000 and it follows FSSAI, Halal, Kosher, EIC/Europe Regulations requirements and holds APEDA registration. Revenue from operations was ₹8,157.74 lakhs in FY2023 (restated PAT ₹516.67 lakhs) and ₹6,874.75 lakhs for the nine months ended December 23, 2023 (restated PAT ₹588.89 lakhs). Through this IPO of 64,50,000 fresh equity shares on the BSE SME platform, it proposes to fund capital expenditure (plant and machinery), working capital and general corporate purposes.
Objects of the Issue
- Funding Capital Expenditure (purchase of plant and machinery) ₹ 1,212.33 lakhs p.87
- Working Capital Requirements ₹ 1,384.00 lakhs p.92
- General Corporate Purposes (capped at 25% of Gross Proceeds) p.95
Issue Structure
- Total Issue
- 64,50,000 Equity Shares of face value ₹ 10 each aggregating to ₹ [●] lakhs (price not yet determined)
- Fresh Issue
- 64,50,000 Equity Shares aggregating to ₹ [●] lakhs (the entire issue constitutes a fresh issue)
- Offer for Sale
- Nil
- Face Value
- ₹ 10/- each
Business Model
DFPL earns revenue predominantly from the sale of dairy ingredient products manufactured at its Dindigul facility — domestic product sales contributed 96.11% of revenue from operations for the nine months ended December 23, 2023 (91.89% in FY2023) — supplemented by export sales (1.43% in 9M-FY24; 7.10% in FY2023) and processing charges earned for processing services (2.33% in 9M-FY24; 0.81% in FY2023). It typically sells based on purchase orders from industrial customers in the dairy, food ingredients, nutrition, ice cream and baking industries.
Business Segments
SWOT Analysis
- • Diverse product basket catering to multiple industries(p.129)
- • Extensive raw-milk procurement network of village collection centres, farmers and dairy farms(p.129)
- • Large owned manufacturing facility with internationally standardised processing technology(p.129)
- • Quality assurance backed by multiple food-safety certifications(p.129)
- • Experienced promoter and management team with deep dairy-industry expertise(p.129)
- • Key partner to FSSAI in framing Milk Protein Concentrate regulations(p.126)
- • History of net losses and negative net worth for three consecutive fiscals(p.28)
- • High customer concentration with no long-term volume commitments(p.31)
- • Dependence on few suppliers for purchases(p.30)
- • Highly leveraged balance sheet with restrictive covenants on borrowings(p.43)
- • Unsecured loans from related parties that may be recalled at any time(p.44)
- • Revenue concentrated in Tamil Nadu, Gujarat and Himachal Pradesh(p.33)
- • Dependence on a single processing facility exposed to operational risks(p.31)
- • Past non-compliance with Companies Act filing provisions (PAS-3/MGT-14)(p.31)
- • Capacity expansion into butter, sodium caseinate/multi-product and retail packing lines funded by IPO proceeds(p.130)
- • Expansion into new domestic geographies with a larger sales team(p.130)
- • International expansion focused on ASEAN and European markets, later Africa and South America(p.130)
- • Entry into B2C nutrition via ActivDay brand and white-label infant milk formulas across age groups(p.130)
- • Brand-building initiatives to enhance visibility and credibility(p.130)
- • Large and fast-growing Indian dairy market(p.123)
- • Structural demand tailwinds from population growth, urbanisation and rising incomes(p.123)
- • Volatility in availability and price of raw milk beyond company control(p.29)
- • Intense and intensifying competition in the dairy ingredients market(p.37)
- • Foreign exchange risk on unhedged export receivables(p.43)
- • Risk of failing to obtain, maintain or renew statutory permits and approvals(p.35)
- • Time-bound quality accreditations requiring timely renewal (FSSAI approval expires October 2024)(p.37)
- • Shifting consumer preferences and health concerns that could reduce dairy demand(p.34)
- • Dependence on growth of the dairy industry and downstream customer industries(p.47)
- • Seasonal availability of raw materials causing fluctuations in results(p.38)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| R Rajasekaran | Promoter | 10.80% | 7.95% |
| Rajadharshini Rajasekaran | Promoter | 8.02% | 5.90% |
| Indrayani Biotech Limited | Corporate Promoter | 42.59% | 31.34% |
| Rajasekaran Suriyaprabha | Promoter Group | 6.54% | 4.81% |
| Sarayu | Promoter Group | 4.12% | 3.03% |
| S R Srinivasan | Promoter Group | 1.27% | 0.94% |
| Ravi Chandran Ranganathan | Promoter Group | 7.33% | 5.39% |
Leadership
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.