Dodla Dairy Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India to raise funds via an initial public offering.
The main business of the company is the sale of milk and dairy-based value-added products (VAPs) in the branded consumer market. It has a strong consumer recognition, particularly in the States of Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.
The company plans to raise around ₹800 crore through IPO, a person familiar with the development said.
The public issue comprises a fresh issue of up to ₹50 crore by the company and an offer for sale of up to 10.09 million equity shares by promoters and an investor.
The offer for sale consists of up to 8.30 million shares by TPG Dodla Dairy Holdings and the rest by promoters of the company.
Proceeds from the issue will be used for repayment borrowings of ₹32.26 crore and funding capital expenditure requirements of ₹7.15 crore.
As of December 2020, the company had a total outstanding indebtedness of ₹963.76 million comprising long-term borrowings, working capital facilities and NCDs.
For fiscal year 2020, the company reported a revenue of ₹2,139.37 crore from ₹1,691.67 crore a year ago. Net profit for the period stood at ₹49.87 crore versus ₹62.76 crore last year.
ICICI Securities and Axis Capital are advising Dodla on the IPO.
