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Hyderabad based Dodla Dairy plans to hit the primary market with a Rs 500-crore initial public offering (IPO). Dodla, which will be valued at Rs 3,000 crore, has hired investment banks Edelweiss and ICICI Securities to run the process. Through this IPO, existing investor Rise Fund, managed by US-based PE fund TPG Growth, will make a partial exit. At present, Rise Fund holds about 25 per cent stake in Dodla.
Dodla Dairy, founded by first generation entrepreneur Sunil Reddy in 1998, sells about 11 lakh litres of milk and 6 tonnes of milk products a day. In 2016-17, it posted revenue of Rs 1,413 crore. The company carries out procurement, processing and packaging of milk and milk products in four states and sells those in nine states. At present, it has 11 milk processing and packaging plants in Telangana, Andhra Pradesh and Karnataka.
The preliminary draft red herring prospectus for the IPO is likely to be filed in a couple of months, said one of the people. Rise Fund plans to dilute as much as a 10-12 per cent stake.
A part of the issue will be in new shares and the Hyderabad-headquartered company plans to utilise the proceeds to set up more units and for global expansions. It is aiming for opportunities in global markets like Europe and Africa through multiple buyouts.