Incorporated in

1995

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CONTENT
 INTRODUCTION

 COMPANY OVERVIEW

 STRENGTH AND WEAKNESS

 IPO DETAILS

 FINANCIAL PERFORMANCE

 RISKS
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INTRODUCTION
DODLA DAIRY is an integrated South India-based
dairy company, primarily deriving all of its revenue
from milk and dairy-based value-added products.
DODLA DAIRY is the third-largest player in terms
of milk procurement per day, with an average
procurement of 1.03 million litres of raw milk per
day (MLPD) as of March 31, 2021.

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Company
information
Date of incorporation - 15 may,1995
Founded - 1998
Headquarters - Hyderabad, India
Type - Public limited company 
Founder - Sunil Reddy
CEO - Venkat Krishna
Reddy
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COMPANY OVERVIEW
 Values  Mission Statement
 Commitment  To supply good and safe milk &
 Sincerity milk products Consistently
through continual improvement
 Hard work
of our systems and practices
 Transparency
 Integrity  Vision Statement
 Honesty
 To be a world-class dairy company
by providing high-quality products
and services.
 BUSINESS
overview
- DODLA offers Fresh Milk, Butter, Ghee, Paneer,
Curd, Flavoured Milk, Doodh Peda, Ice Cream and
Skimmed Milk Powder.

- The company also manufactures and sells cattle

feed to farmers through its procurement network.

- Its procurement operations are spread across the

states of Andhra Pradesh, Telangana, Tamil Nadu,
Karnataka and Maharashtra domestically and
internationally in Africa.

- Dodla Dairy derives 73% of its revenues from milk

while the remaining comes from high margin value-
added products such as curd, paneer, ice cream
and buttermilk.
 STRENGTHs AND WEAKNESS
1) Contamination/spoilage of raw
materials.
2) Consumer product liability
claims.
3) Product tampering and
product labelling errors.
4) The expense and possible
unavailability of product liability
insurance.
5) The potential cost and
disruption of product recalls.
1) Large product portfolio.
2) Leading dairy player in the
Southern region of India.
3) Strong distribution network.
4) Integrated business model
with stringent quality control
procedure.
5) Experienced board and
managerial team.
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OBJECTIVES OF THE ISSUE
The net IPO proceeds will be used for the following purposes;

 To repay or prepay company's borrowings fully or partially.

 To finance capital expenditure requirements.
 To meet general corporate purposes.

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IPO Details
IPO Open Date Jun 16, 2021

IPO Close Date Jun 18, 2021

Basis of Allotment
Date
Jun 23, 2021 IPO Lot Size
Initiation of Refunds Jun 24, 2021 Amount
Application Lots Shares (Cut-off)
Credit of Shares to Jun 25, 2021 Minimum 1 35 ₹14,980
Demat Account Maximum 13 455 ₹194,740
IPO Listing Date Jun 28, 2021
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IPO Subscription Status
 The Dodla Dairy IPO is
subscribed 45.62x times Category IPO Subscription
on Jun 18, 2021 17:00.
The public issue
subscribed 11.34x in the
QIB  84.88x
retail category, 84.88x
in the qualified NII  73.26x
institutional buyer
category, and 73.26x in
the non-institutional
RII  11.34x
buyer category.
Total  45.62x
 IPO Lead
Managers
IPO Promoter Holding 1) Axis Capital Limited
 Pre Issue 68.52% 2) ICICI Securities Limited
Share 3) Edelweiss Broking limit
Holding
 Post Issue 64.17%

IPO Registrar
Share
Holding
 

KFintech Private Limited

Hyderabad, Telangana
Dodla Dairy’s Earnings over FY 2018-20

 Dodla's revenue rose 16 per cent annually.

 EBIDTA by 12 per cent annually.
 PAT fell 6 per cent annually during the same period.
 Value products that accounted for 27.18 per cent of total
revenues in FY20 commanded 24.68 per cent of the revenue pie
in the first nine months.
 EBIDTA margin for the nine-month period soared to 14.6 per cent
from 6.6 per cent in FY20.
FINANCIAL FR
PERFORMANCE
For the FY ending Mar 20, Company’s:
 Total Fixed Assets stood at 7405.11 Million (INR).
 Total Equity stood at 3969.79 Million (INR).
 Total Liabilities stood at 3435.32 Million (INR).
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Capital Expenditures by the
Company
The company has incurred cumulative captive expenditure of Rs 264.48 Crore over
the past three years towards commissioning :

 A new processing plant at Rajahmundry in Andhra Pradesh.

 Acquisition of the processing plants at Batlagundu and Vedasandur in Tamil

Nadu (from KC Dairy Products).

 Acquisition of the cattle feed and mixing plant at Kadapa in Andhra Pradesh
and establishment of new village-level collection centres (VLCCs).
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Recent Deals
According to Choice Broking:
 Dodla's Dairy has on February 2, 2021 executed a
private placement, allocating 26.5 lakh shares to
International Finance Corporation at Rs 377.
 On June 11, a few members of promoters transferred
9.7 lakh shares to SBI Mutual Fund at Rs 411.50. The
price band of Rs 421-428 is a bit higher than the recent
deal prices.
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OUTLOOK
 Brokerage Ventura Capital sees EBIDTA to fall 4.9 per
cent annually and PAT by 4.4 per cent by FY24.
 ROE is expected to fall 611 bps to 20.5 per cent and
ROIC by 345 bps to 33.9 per cent by FY24.
 Investors may want to wait for more signs of strong
post-pandemic performance before considering
investing in the company’s growth story.
 Analysts mostly have rated this stock as 'subscribe for
the long-term'.
 INTERNAL
1. Its inability to compete with
dairy cooperatives may adversely
affect its results of operations and
financial condition.
2. Any disruption in transportation
arrangements may adversely
affect its results of operations.
3. Technology failures or
advancements could disrupt its
operations and financial
performance.
EXTERNAL
1. It may be affected by competition
laws, the adverse application or
interpretation of which could
adversely affect its business.
2. Its business is substantially
affected by prevailing economic,
political and other prevailing
conditions in emerging markets.
3. Any adverse change in India’s
sovereign credit rating by an
international rating agency could
adversely affect its business, results
of operations and cash flows .
PRESENTED BY:

ROHIT - 21BSP3203
TANISHQ - 21BSP3202
SHUBRONIL - 21BSP1080
YASHIKA - 21BSP1167
RACHIT - 21BSP0972
TANUJ - 21BSP3301
VANSHAJ - 21BSP3108
SWASTIKA - 21BSP3101
MEHAK - 21BSP3584
MANJU - 21BSP3583
MD SAHIR - 21BSP0896