Shares of milk distributor Dodla Dairy list at 38% premium on exchanges

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Shares of milk distributor Dodla Dairy list at 38% premium on exchanges
Business Insider
  • Dodla Dairy lists at 38% premium from its price band of Rs 421-428 apiece.
  • The company’s shares had been subscribed 45.62 times on the last day of its subscription.
  • Hyderabad-based Dodla Dairy is one of the largest distributors of milk and dairy-based value-added products in south India.
The wait has finally ended as Dodla Dairy has listed its shares on India’s stock exchanges. The Hyderabad-based dairy company saw its shares listed at ₹582 -- a jump of almost 38% from its initial price ₹421-428 apiece.

The shares of Dodla Dairy continued to rise and were trading at ₹600 at 10.27 a.m.

The grey market had indicated a strong listing of Dodla Dairy company as it stayed around ₹70-90 premium per share, according to IPOwatch. However, the grey market is not an official measure of the market premium.

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The 26-year-old company operates in south India. It is the third largest milk producer in the country, with its milk procurement standing at 1.03 million litres per day.

Their operations in India are primarily across the five Indian states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra. Their overseas operations are based in Uganda and Kenya.

Dodla Dairy's ₹520 crore initial share-sale was subscribed 45.62 times at a price band of ₹421-428 apiece.

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The company has delivered consistent growth over the last three financial years both in terms of

financial and operational metrics, mentions a report by HDFC Securities. Its revenue from operations increased at a compound annual growth rate (CAGR) of 15.98% from FY18 to FY20 and amounted to ₹21,393.73 million in FY20.


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