Shares of Dodla Dairy Ltd. surged on market debut after investors piled into the initial public offer of the curd to milk-based sweets maker.
The stock listed at Rs 528 apiece, a 23% premium to its issue price of Rs 428, according to exchange data. It saw an intraday high of Rs 652 (or 52%) thereafter. It ended its first day of trading at Rs 609.90, up 42.5%. That compares with the Nifty 50's and Sensex's 0.29% and 0.36% fall, respectively.
Dodla Dairy's three-day Rs 520-crore IPO, from June 16-18, was subscribed 45.62 times, replacing Anupam Rasayan Ltd. to become the seventh-most subscribed issued in 2021 so far.
The portion meant for institutional investors was subscribed 84.88 times, while that of non-institutional counterparts saw 73.26 times more demand than shares on offer. Retail investors, too, piled in with the category reserved for them subscribing 11.33 times.
The dairy products company, in its red herring prospectus, had said it aims to use the proceeds from the fresh issue to repay or prepay borrowings, and fund capital expenditure requirements. The IPO also comprised an offer-for-sale of up to 1.09 crore equity shares by promoters and private equity investors such as TPG.
Dodla Dairy is India's third-largest dairy company by daily milk procurement. It's also the second-biggest by market presence among private dairies, with a significant presence in southern region.
Dodla Dairy processes and retails milk and produces dairy-based value-added products such as curd, ghee, butter, flavoured milk and ice cream, among others. It also manufactures and sells cattle feed to farmers through its procurement network.
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