Dindigul Farm IPO fully subscribed on the first bidding day on strong retail, NII demand; check GMP, other key details.

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The company was founded in 2010 and primarily processes whole milk and skim milk to produce dairy ingredients such as milk protein concentrates, skimmed milk powder, dairy whitener, etc. 

The company’s processing plant is located in Dindigul and covers 15 acres. The company markets its goods under the brand names ENNUTRICA and Activday and now supplies a diverse range of clients from various sectors. For the fiscal year 2022-23, the firm sold items in over 15 states domestically and three nations overseas. However, it intends to extend their worldwide business by entering additional ASEAN and European markets, as per the red herring prospectus (RHP).

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The company’s listed peers are Dodla Dairy Ltd (with a P/E of 29.36), Parag Milk Foods Ltd (with a P/E of 11.55), and Modern Dairies Ltd (with a P/E of 3.61).

In terms of financial performance, the company’s total income/net profit/loss has been Rs. 18.41 cr. / Rs. – (4.62) cr. (FY21), Rs. 28.45 cr. / Rs. – (4.17) cr. (FY22), and Rs. 81.99 cr. / Rs. 5.17 cr. (FY23), respectively. For the 267 days of FY24, which concluded on December 23, 2023, it achieved a net profit of Rs. 5.89 crore on a total income of Rs. 68.77 crore. 

The significant increase in its top and bottom lines beginning in FY23 raises questions about the durability of such increases in the future, given the segment’s strong competitiveness and fragmentation, according to chittorgarh.com.

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Dindigul Farm IPO Subscription Status 

Dindigul Farm IPO subscription status is 2.29 times, on day 1, so far.

The retail portion was subscribed 3.82 times, and NII portion was booked 1.75 times. Qualified Institutional Buyers is yet to be booked.

The company has received bids for 98,10,000 shares against 42,90,000 shares on offer, at 12:39 IST, according to data on chittorgarh.com.

Dindigul Farm IPO Details 

The Dindigul Farm IPO, worth 34.83 crore, consists of a fresh issuance of 6,450,000 equity shares at face value of 10. There is no offer-for-sale component.

The proceeds from the fresh issuance will be used for capital expenditure, working capital requirements, and general company purposes.

Beeline Capital Advisors Pvt Ltd is the book running lead manager for the Dindigul Farm IPO, while Link Intime India Private Ltd is the registrar. Spread X Securities is the market maker for the Dindigul Farm IPO.

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Dindigul Farm IPO GMP today

Dindigul Farm IPO GMP or grey market premium is +70. This indicates Dindigul Farm share price were trading at a premium of 70 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, Dindigul Farm IPO expected listing price was indicated at 124 apiece, which is 129.63% higher than the IPO price of 54.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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Dindigul Farm Product IPO Review

According to Dilip Davda, a contributing editor at Chittorgarh, the firm reported negative results in FY21 and FAY22 before improving performance by simplifying its production facilities, which increased its top and bottom lines. Its largest owner, Indrayani Biotech, is in the spotlight following a change in management and a modification in its business approach. Based on annualised super profits for FY24, the issue looks to be fully valued. Investors may reserve cash for the medium to long term.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 20 Jun 2024, 12:48 PM IST



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