India: TPG-backed Dolda Dairy set to raise funds via IPO route

Photo: Pixabay

Dodla Dairy Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India to raise funds via an initial public offering.

The main business of the company is the sale of milk and dairy-based value-added products (VAPs) in the branded consumer market. It has a strong consumer recognition, particularly in the States of Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.

The company plans to raise around 800 crore through IPO, a person familiar with the development said.

The public issue comprises a fresh issue of up to 50 crore by the company and an offer for sale of up to 10.09 million equity shares by promoters and an investor.

The offer for sale consists of up to 8.30 million shares by TPG Dodla Dairy Holdings and the rest by promoters of the company.

Proceeds from the issue will be used for repayment borrowings of 32.26 crore and funding capital expenditure requirements of 7.15 crore.

As of December 2020, the company had a total outstanding indebtedness of 963.76 million comprising long-term borrowings, working capital facilities and NCDs.

For fiscal year 2020, the company reported a revenue of 2,139.37 crore from 1,691.67 crore a year ago. Net profit for the period stood at 49.87 crore versus 62.76 crore last year.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.