Company offering on sale up to 10,985,444 equity shares
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The public issue comprises a fresh issue of equity shares worth up to Rs 50 crore and an offer for sale (OFS) of up to 1 crore equity shares.

Integrated dairy company Dodla Dairy has fixed a price band of ₹421-₹428 per equity share for its Initial Public Offer (IPO), to raise ₹520 crore, which opens on June 16.

The IPO comprises a fresh issue aggregating up to ₹50 crore and and offer for sale of up to 10,985,444 equity shares. The offer for sale consists of up to 92 lakh equity shares by TPG Dodla Dairy Holdings Pte Ltd and up to 4,16,604 equity shares by Dodla Sunil Reddy and up to 1,041,509 equity shares by Dodla Family Trust and up to 3,27,331 equity shares by Dodla Deepa Reddy.

On utilisation of the proceeds from the IPO, the company said ₹32.26 crore would be used for repaying borrowings availed from ICICI Bank, the Hongkong and Shanghai Banking Corporation and HDFC Bank. A little over ₹7 crore would be used to fund incremental capital expenditure requirements.

Managing Director Dodla Sunil Reddy told media that the company intended to pursue both organic and inorganic growth for increased market presence. Besides being a major player in south India and Maharashtra, the company also has presence in the markets of Uganda.

To queries, he said the pandemic impacted the operations, especially pushed up the cost of production. Documents related to IPO filed by the company said COVID-19 has had an adverse “effect on our business and operations.”

The “pandemic has affected and may continue to affect our business, results of operations and financial condition in a number of ways, including a decrease in our sales volume by 20% and in our revenues by 12% from the period December 31, 2019 to December 31, 2020.” It includes a decline in sales of products such as processed milk, ice cream, curd and butter milk in metro cities of Bengaluru and Chennai, “primarily because of the migration of our retail customers to their base home town.” Sales to commercial establishments were also affected.

Mr. Reddy, however, was hopeful that once the COVID-19 impact is over, the company would be able to clock 15-20% growth rates. The IPO will close on June 18.

Shares of Saputo Inc. SAP, -0.63% dropped 2.76% to C$33.15 Monday, in what proved to be an all-around negative trading session for the Canadian market.

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