Founded in 2010, Dindigul Farm specialises in processing milk into dairy ingredients like milk protein concentrates, skimmed milk powder, and dairy whitener. Their processing facility spans 15 acres in Dindigul. They market their products under the brands ENNUTRICA and Activday, supplying a wide range of customers both domestically and internationally. For the financial year 2022-23, they sold products across 15 states in India and to three countries. The company plans to expand further into ASEAN and European markets according to their red herring prospectus (RHP).
Dindigul Farm’s competitors include Dodla Dairy Ltd (P/E of 29.36), Parag Milk Foods Ltd (P/E of 11.55), and Modern Dairies Ltd (P/E of 3.61).
Financially, the company’s performance has improved recently. Their total income and net profit/loss over the past few years were:
- FY21: ₹18.41 crore / – ₹4.62 crore
- FY22: ₹28.45 crore / – ₹4.17 crore
- FY23: ₹81.99 crore / ₹5.17 crore
For the 267 days of FY24 ending December 23, 2023, they recorded a net profit of ₹5.89 crore on a total income of ₹68.77 crore.
Despite their recent growth, some analysts have concerns about whether this success will continue, given the strong competition and fragmented nature of the dairy industry.
Dindigul Farm IPO Subscription Status
On the first day of bidding, the Dindigul Farm IPO was subscribed 2.29 times. Here’s how the subscriptions broke down:
- Retail investors: 3.82 times
- Non-Institutional Investors (NII): 1.75 times
- Qualified Institutional Buyers (QIB): Yet to be subscribed
As of 12:39 IST, the company received bids for 98.10 lakh shares compared to the 42.90 lakh shares on offer.
Dindigul Farm IPO Details
- Total Issue Size: ₹34.83 crore
- Shares Offered: 64,50,000 equity shares with a face value of ₹10 each
- Use of Proceeds: Capital expenditure, working capital needs, and general corporate purposes
- Book Running Lead Manager: Beeline Capital Advisors Pvt Ltd
- Registrar: Link Intime India Private Ltd
- Market Maker: Spread X Securities
Dindigul Farm IPO GMP Today
The grey market premium (GMP) for the Dindigul Farm IPO is currently +₹70. This indicates that shares are trading at a premium of ₹70 in the grey market. Considering the upper end of the IPO price band (₹54), the expected listing price is around ₹124 per share, which is 129.63% higher than the issue price.
The GMP reflects how much investors are willing to pay above the issue price in the grey market.
Dindigul Farm Product IPO Review
Analyst Dilip Davda noted that Dindigul Farm faced losses in FY21 and FY22 but has turned its performance around by streamlining its production facilities. This has boosted both its revenue and profit. The company’s main owner, Indrayani Biotech, is also undergoing significant changes, improving its business model and management. Based on the expected profits for FY24, the IPO seems reasonably valued. Investors are advised to consider the medium to long-term potential before investing.
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