Dindigul Farm IPO: Check Date, Review, Price Band, Allotment Details

Dindigul Farm IPO: The initial public offering (IPO) of Dindigul Farm Product began its subscription phase on Thursday, June 20, and will continue until Monday, June 24. The IPO features a lot size of 2,000 shares, with a price band set between Rs 51 and Rs 54 per equity share, each with a face value of Rs 10.

On the first day of subscription, the IPO received an overwhelming response, being subscribed 6.11 times. The retail portion of the IPO saw a subscription rate of 10.21 times, while the Non-Institutional Investors (NII) portion was subscribed 4.68 times. The Qualified Institutional Buyers (QIB) segment was minimally subscribed at 1 per cent. In total, the company received bids for 26,208,000 shares against the 4,290,000 shares on offer, as per data from chittorgarh.com.

The Dindigul Farm IPO aims to raise Rs 34.83 crore through the issuance of 6,450,000 equity shares at a face value of Rs 10 each. Notably, there is no offer-for-sale component in this IPO. The funds raised will be utilised for capital expenditure, working capital needs, and general corporate purposes.

Beeline Capital Advisors Pvt Ltd is serving as the book-running lead manager for the IPO, while Link Intime India Private Ltd is acting as the registrar. Spread X Securities is designated as the market maker for the offering.

In the grey market, the Dindigul Farm IPO is witnessing a premium of Rs 70, indicating a significant investor interest. Considering the upper end of the IPO price band and the current grey market premium, the expected listing price of Dindigul Farm shares is around Rs 124 apiece, reflecting a 129.63 per cent increase over the IPO price of Rs 54.

Dindigul Farm Product, founded in 2010, specialises in processing whole milk and skim milk to produce various dairy ingredients, including milk protein concentrates and skimmed milk powder. The company's processing facility, spanning 15 acres, is located in Dindigul. Their products are marketed under the brand names ENNUTRICA and Activday, catering to a wide range of clients across multiple sectors.

In the fiscal year 2022-23, Dindigul Farm Product sold its goods across 15 states in India and three countries overseas. The company plans to expand its international presence by targeting additional markets in the ASEAN and European regions, as outlined in their red herring prospectus (RHP).

Despite the impressive growth in revenue and profits reported for FY23, analysts from chittorgarh.com have raised concerns about the sustainability of this growth given the competitive and fragmented nature of the dairy processing industry.