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Below are Perspective on Today`s IPO Listing on Dodla Dairy by Mr. Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services

“Dodla dairy, a South based dairy firm, had a strong listing today with 28% premium at Rs550/share against its issue price of Rs428/share. The Rs520 crore issue had seen strong subscription of 45.6 times, given its presence in niche space and decent fundamentals. Dodla Dairy is one of the leading dairy firm in Southern India and is the third-largest player in terms of milk procurement per day. It derives about 30% of its revenue from the value added products, the share of which is likely to accelerate going ahead. The issue was reasonably priced at 16.4x FY21 P/E vis-à-vis its peers, which also led to strong interest in the counter apart from its presence in niche space. However the listed companies in this space have not done well so far, thus it needs to be seen how this company performs going ahead.”

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