491539 SIP myths you must know!
Dodla Dairy IPO update: The IPO comprises a fresh issue of Rs 50 crore and an offer for sale of 1,09,85,444 equity shares
Shares of Dodla Dairy, which will list on bourses on Monday, may see a decent start on stock exchanges after receiving an overwhelming response to the initial public offer (IPO). Market watchers believe that the scrip may list at a premium of 18%-20%.
Earlier, the public offer of Dodla Dairy was subscribed 45.61 times on the last day of subscription on June 18. The Rs 520.17-crore initial public offer (IPO) received bids for 38,80,64,950 shares against 85,07,569 shares on offer, according to an update on the NSE.
Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO and Unlisted Shares, told Money9.com that the grey market premium of Dodla Dairy is hovering in the range of Rs 80-85. “GMP has mostly remained stable around Rs 75-80 this week,” he said. The offer was in a price range of Rs 421-428 per share.
Details
The qualified institutional buyers (QIBs) category was subscribed 84.88 times, non-institutional investors 73.26 times, and retail individual investors 11.33 times.
The IPO comprises a fresh issue of Rs 50 crore and an offer for sale of 1,09,85,444 equity shares. The company is a leading dairy company in southern India.
Operations
The company’s operations in India are primarily across four states — Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. Its international operations are based in Uganda and Kenya.
The proceeds from the issue will be used for payment of certain borrowings, funding capital expenditure requirements of the company, and for general corporate purposes.