PremiumMUMBAI: The initial public offering (IPO) of TPG-backed Dolda Dairy Ltd will open on 16 Jun. Price band for the issue has been fixed at ₹421-428 a share. The issue will close on 18 June.
The IPO consists of a fresh issue of ₹50 crore and an offer for sale of 10.99 million shares by its existing shareholders and promoters. On the upper band of the issue, offer for sale (OFS) amounted to ₹470 crore.
The OFS comprises sale in of 9.20 million shares by TPG Dolda Dairy Holdings PTE Ltd, upto 4.12 lakh by Dolda Sunil Reddy, upto 1.04 million by Dolda Trust Family and upto 3.27 lakh shares by Dolda Deepa Reddy.
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.
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 non-convertible debentures or NCDs.
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