Dodla Dairy share sale via initial public offering (IPO) was oversubscribed on the second day of the issue. Dodal Dairy shares were in high demand as the issue was subscribed over two times till 1:20 pm on the second day of the issue, data from the National Stock Exchange showed. Dodla Dairy received over 11.9 crore bids for 85 lakh shares on the offers. A total of 1.38 crore bids were received at the cut-off price.
Retail individual investors seen participating in high numbers in the ongoing IPO as the portion reserved for them was subscribed 2.15 times, portion reserved for non-institutional bidders was subscribed 22 per cent and portion reserved for Qualified Institutional Buyers(QIBs) was subscribed 17 per cent.
Dodla Dairy is selling shares in the price band of Rs 421-428 in the onging IPO which will end on June 18.
Dodla Dairy's public offer consists of fresh issue of up to Rs 50 crore and an offer for sale of up to 1.09 crore shares by the promoters. The offer for sale consists of 92 lakh shares by investor TPG Dodla Dairy Holdings, 4,16,604 equity shares by Dodla Sunil Reddy, 10,41,509 equity shares by Dodla Family Trust and 3,27,331 equity shares by Dodla Deepa Reddy.
Applicants can bid for a minimum one lot of 35 shares and in multiples of 35 shares thereafter, extending up to 13 lots. A total of 50 per cent of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail buyers and 15 per cent for non-institutional investors.
The company will utilise the IPO proceeds to repay debt and for capital expenditure requirements.
Dodla Dairy is the third company to launch IPO next week, after Shyam Metalics and Sona Comstar.