| Basis of Allotment |
THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLVAND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE. PURCHASE OR SUBSCRIBE TO SECURITIES NOR IS IT A PROSPECTUS ANNOUNCEMENT. NOT FOR RELEASE PUBLICATION OR DISTRIBUTION. DIRECTLY OR INDIRECTLY. OUTSIDE INDIA.
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| DODLA DAIRY LIMITED |
Our company was incorporated as Dodla Dairy Limited ("DDL") pursuant to a certificated of incorporation issued or Mar 15, 1995 oy the Registrar of Companies. Telangana at Hyderabad, ("RoC"), as a public limited company under the companies Act, 1956.
Subsequently, a certificate cf commencement of business was issued to our Company on May 23, 1995 by the RoC. For further detals in relation to our Company, see "History and Certain Corporate Matters" on page 152 of the Prospectus dated June 21, 2021 ("Prospectus') filed with the RoC and thereafter with tbe Securities and Exchange Board of Inda ("SEBI"), BSE Limited ("BSE") and Naitonal Stock Exchange of India Limite ("NSE", and together with BSE, the "Stock Exchangos").
| Registered Office and corporate Office : 8-2-298/82/A/270-Q. Road No. 10-C. Jubilee Hills, Hyderabad 500 033, Telangana, India |
| Tel: +91 40 4546 7777; Fax: +91 40 4546 7768; Contact Person: Rucnita Malpani, Company Secretary and Compliance Officer; E-mail mail@dodladairy.com; Website: www.dodladairy.com; Corporate Identity Number: U15203TG1995PLC020324 |
| OUR PROMOTERS: DODLA SUNIL REDDY, DODLA SESHA REDDY AND DODLA FAMILY TRUST |
| Our Company has filed the Prospectus with RoC and the Equity Shares are proposed to be listed on the BSE and NSE and the trading is to commence on June 28, 2021. |
| BASIS OF ALLOTMENT |
INITIAL PUBLIC OFFERING OF UP TO 12,153,668 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH ("EQUITY SHARES") OF DODLA DAIRY LIMITED ("COMPANY") FOR CASH AT A PRICE OF Rs. 428 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 418 PER EQUITY SHARE) (THE "OFFER PRICE") AGGREGATING UP TO Rs. 5,201.77 MILLION ("OFFER"). THE OFFER COMPRISES A FRESH ISSUE OF 1,168,224 EQUITY SHARES AGGREGATING UP TO Rs. 500 MILLION AND AN OFFER FOR SALE OF 10,985,444 EQUITY SHARES CONSISTING OF 9,200,000 EQUITY SHARES BY TPG DODLA DAIRY HOLDINGS PTE. LTD. "INVESTOR SELLING SHAREHOLDER") AND 416,604 EQUITY SHARES BY DODLA SUNIL REDDY AND 1,041,509 EQUITY SHARES BY DODLA FAMILY TRUST ("PROMOTER SELLING SHAREHOLDERS"), AND 327,331 EQUITY SHARES BY DODLA DEEPA REDDY ("PROMOTER GROUP SELLING SHAREHOLDER" AND TOGETHER WITH THE INVESTOR SELLING SHAREHOLDER AND THE PROMOTER SELLING SHAREHOLDERS, THE "SELLING SHAREHOLDERS"), AGGREGATING UP TO Rs. 4,701.77 MILLION ("OFFER FOR SALE"). THE OFFER CONSTITUTED 20.43% OF THE FULLY DILUTED POST OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
| OFFER PRICE: Rs. 428 PER EQUITY SHARE OF FACE VALUE OF Rs. 10 EACH |
| ANCHOR INVESTOR OFFER PRICE: Rs. 428 PER EQUITY SHARE |
| THE OFFER PRICE IS 42.8 TIMES THE FACE VALUE |
| Risks to Investors | |
| 1. | The two book running lead managers ("BRLMs") associated with the Offer have handled 32 public issues in the past three years, out of which 13 issues closed below the issue price on listing date. |
| 2. | The Price/Earnings ratio based on diluted EPS on a restated consolidated basis for Fiscal 2020 for the Issuer at the upper end of the Price Band is as high as 47.77 as compared to the average industry peer group PE ratio of 68.00 |
| 3. | Average cost of acquisition of Equity Shares held by the Selling Shareholders ranges from Rs. 0.37 per Equity Share to Rs. 213.39 per Equity Share and Offer Price at upper end of the Price Band is Rs. 428. |
| 4. | Weighted Average Return on Net Worth for Fiscals 2020, 2019, 2018 is 13.69 |
| BID/ OFFER PERIOD: |
| OPENED ON: WEDNESDAY, JUNE 16, 2021 |
| CLOSED ON : FRIDAY, JUNE 18, 2021 |
| ANCHOR INVESTOR OPEN/CLOSE DATE WAS : TUESDAY, JUNE 15, 2021 |
The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR") read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") (the "QIB Portion"), provided that our Company and the Selling Shareholders in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis ("Anchor Investor Portion"). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price in accordance with SEBI ICDR Regulations. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to RIBs in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount ("ASBA'') process providing details of their respective bank accounts (including UPI ID for RIBs using UPI Mechanism), in which the corresponding Bid Amounts will be blocked by the SCSBs or the Sponsor Bank, as applicable. Anchor Investors are not permitted to participate in the Offer through the ASBA process. For details, see "Offer Procedure'' on page 288 of the Prospectus.
The bidding for Anchor Investors opened and closed on June 15, 2021.
The Company received 18 applications from 11 anchor investors for 4,158,875 equity shares. The Anchor Investor Offer Price was finalized at Rs. 428 per Equity Share. A total of 3,646,099 shares were allocated under the Anchor Investor Portion aggregating to Rs. 1,560,530.372.
The company received a total of 1,023,690 applications for 386,065,120 Equity Shares (prior to technical rejections) resulting in 31.77 times subscription. The details of the applications received in the Offer from various categories are as under: (before technical rejections):
| Sr. No. | Category | No. of Applications applied | No. of Equity Shares | Equity Shares Reserved as per Prospectus | No. of times Subscribed | Amount (Rs.) |
| A | Qualified Institutional Bidders (excluding Anchor Investors) | 69 | 205,814,805 | 2,430,734 | 84.67 | 88,088,736,540 |
| B | Non-Institutional Investors | 1,507 | 133,755,195 | 1,823,051 | 73.37 | 57,247,445,115 |
| C | Retail Individual Investors | 1,022,096 | 42,336,245 | 4,253,784 | 9.95 | 18,121,313,774 |
| D | Anchor Investors | 18 | 4,158,875 | 3,646,099 | 1.14 | 1,779,998,500 |
| Total | 1,023,690 | 386,065,120 | 12,153,668 | 31.77 | 165,237,493,929 |
Final Demand
A summary of the final demand as at different Bid prices is as under:
| Sr. No. | Bid Price | No. of Equity Shares | (%) to Total | Cumulative Total | % Cumulative Total |
| 1 | 421 | 325,010 | 0.08 | 325,010 | 0.08 |
| 2 | 422 | 70,385 | 0.02 | 395,395 | 0.10 |
| 3 | 423 | 44,835 | 0.01 | 440,230 | 0.11 |
| 4 | 424 | 39,655 | 0.01 | 479,885 | 0.12 |
| 5 | 425 | 188,965 | 0.05 | 668,850 | 0.17 |
| 6 | 426 | 104,510 | 0.03 | 773,360 | 0.20 |
| 7 | 427 | 112,280 | 0.03 | 885,640 | 0.23 |
| 8 | 428 | 353,642,975 | 90.34 | 354,528,615 | 90.56 |
| 9 | CUT OFF | 36,935,185 | 9.44 | 391,463,800 | 100.00 |
| TOTAL | 391,463,800 | 100.00 |
The Basis of Allotment was finalized in consultation with NSE, Designated Stock Exchange on June 23, 2021.
A. Allotment to Retail Individual Bidders (after technical rejections) (including ASBA Applications)
The Basis of Allotment to the Retail Individual Bidders, who have bid at the Cut-Off Price or at the Offer Price of Rs. 428 per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 9.69545 times. The total number of Equity Shares Allotted in Retail Portion is 4,253,784 Equity Shares to 121,536 successful Retail Individual Bidders. The category-wise details of the Basis of Allotment are as under:
| Category | No. of Applications Received | %of Total | Total No. of Equity Shares applied | % to Total | No. of Equity Shares allotted per Bidder | Ratio | Total No. of Equity Shares allotted |
| 35 | 938,078 | 94.06 | 32,832,730 | 79.61 | 35 | 175 : 1435 | 4,001,235 |
| 70 | 31,172 | 3.13 | 2,182,040 | 5.29 | 35 | 34 : 279 | 132,965 |
| 105 | 9,602 | 0.96 | 1,008,210 | 2.44 | 35 | 34 : 279 | 40,950 |
| 140 | 4,244 | 0.43 | 594,160 | 1.44 | 35 | 34 : 279 | 18,095 |
| 175 | 2,599 | 0.26 | 454,825 | 1.10 | 35 | 34 : 279 | 11,095 |
| 210 | 1,989 | 0.20 | 417,690 | 1.01 | 35 | 34 : 279 | 8,470 |
| 245 | 1,312 | 0.13 | 321,440 | 0.78 | 35 | 34 : 279 | 5,600 |
| 280 | 586 | 0.06 | 164,080 | 0.40 | 35 | 71 : 586 | 2,485 |
| 315 | 322 | 0.03 | 101,430 | 0.25 | 35 | 39 : 322 | 1,365 |
| 350 | 1,549 | 0.16 | 542,150 | 1.31 | 35 | 34 : 279 | 6,615 |
| 385 | 272 | 0.03 | 104,720 | 0.25 | 35 | 33 : 272 | 1,155 |
| 420 | 364 | 0.04 | 152,880 | 0.37 | 35 | 11 :91 | 1,540 |
| 455 | 5,200 | 0.52 | 2,366,000 | 5.74 | 35 | 34 : 279 | 22,190 |
| 1 | 8 : 2405 | 24 | |||||
| TOTAL | 997,289 | 100.00 | 41,242,355 | 100.00 | 4,253,784 |
Please Note : 1 additional Equity Share shall be allotted to 24 Allottees from amongst 7215 Successful Applicants from the categories 70-455 (i.e. excluding successful applicants from Category 35) in the ratio of 8:2405
B. Allotment to Non-Institutional Bidders (After Technical Rejections)
The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Offer Price of Rs. 428 per Equity Share or above, was finalized in consultation with the NSE. The Non-Institutional Portion has been subscribed to the extent of 73.33205 times. The total number of Equity Shares Allotted in this category is 1,823,051 Equity Shares to 904 successful Non- Institutional Bidder. The category-wise details of the Basis of Allotment are as under: (Sample)
| Category | No. of Applications Received | %of Total | Total No. of Equity Shares applied | % to Total | No. of Equity Shares allotted per Bidder | Ratio | Total No. of Equity Shares allotted |
| 490 | 323 | 22.05 | 158,270 | 0.12 | 35 | 62 : 323 | 2,170 |
| 525 | 81 | 5.53 | 42,525 | 0.03 | 35 | 17 : 81 | 595 |
| 560 | 19 | 1.30 | 10,640 | 0.01 | 35 | 4 : 19 | 140 |
| 595 | 10 | 0.68 | 5,950 | 0.00 | 35 | 1 : 5 | 70 |
| 630 | 10 | 0.68 | 6,300 | 0.00 | 35 | 1 : 5 | 70 |
| 665 | 5 | 0.34 | 3,325 | 0.00 | 35 | 1 : 5 | 35 |
| 700 | 64 | 4.37 | 44,800 | 0.03 | 35 | 17 : 64 | 595 |
| 735 | 9 | 0.61 | 6,615 | 0.00 | 35 | 1 : 3 | 105 |
| 770 | 4 | 0.27 | 3,080 | 0.00 | 35 | 1 : 4 | 35 |
| 805 | 7 | 0.48 | 5,635 | 0.00 | 35 | 2 : 7 | 70 |
| 481,040 | 1 | 0.07 | 481,040 | 0.36 | 6,560 | 1 : 1 | 6,560 |
| 560,735 | 1 | 0.07 | 560,735 | 0.42 | 7,647 | 1 : 1 | 7,647 |
| 584,080 | 3 | 0.20 | 1,752,240 | 1.31 | 7,965 | 1 : 1 | 23,895 |
| 584,115 | 7 | 0.48 | 4,088,805 | 3.06 | 7,965 | 1 : 1 | 55,755 |
| 3,387,825 | 1 | 0.07 | 3,387,825 | 2.53 | 46,198 | 1 : 1 | 46,198 |
| 3,504,655 | 1 | 0.07 | 3,504,655 | 2.62 | 47,792 | 1 : 1 | 47,792 |
| 4,672.885 | 2 | 0.14 | 9,345,770 | 6.99 | 63,719 | 1 : 1 | 127,438 |
| 5,841,115 | 4 | 0.27 | 23,364,460 | 17.48 | 79,651 | 1 : 1 | 318,604 |
| 6,074,740 | 1 | 0.07 | 6,074,740 | 4.54 | 82.829 | 1 : 1 | 82,829 |
| TOTAL | 1,465 | 100 | 133,688,065 | 100 | 1,823,051 |
C. Allotment to QIBs
Allotment to QIBs. who have Bid at the Offer Price of Rs. 428 per Equity Share or above, has been done on a proportionate basis in consultation with the NSE This category has been subscribed to the extent of 84.67187 times of QIB Portion. As per the SEBI Regulations. Mutual Funds were Allotted 5% of the Equity Shares of QIB Portion available i.e. 121,536 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were Allotted the remaining available Equity Shares i.e. 2,309,198 Equity Shares on a proportionate basis. The total number of Equity Shares Allotted in the QIB Portion is 2,430,734 Equity Shares, which were allotted to 69 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under.
| Category | FIs/Banks | FIIs/FPIs | IC | MFs | NBFC | OTHs | Total |
| QIB | 930,606 | 655,777 | 62,715 | 296,961 | - | 484,675 | 2,430,734 |
D. Allotment to Anchor Investors.
The Company and the Selling Shareholders, in consultation with the BRLMs, have allocated 3,646,099 Equity Shares to 11 Anchor Investors (through 18 Applications) at the Anchor Investor Offer Price of Rs. 428 per Equity Share in accordance with the SEBI Regulations. This represents 60% of the QIB Portion
| Category | FIs/Banks | MFs | ICs | VCF | AIFs | FPI/FIIs | OTHs | Total |
| Anchor | - | 2,010,377 | - | - | 443,905 | 958,157 | 233,660 | 3,646,099 |
The IPO Committee of our Company on June 23, 2021 has taken on record the Basis of Allotment of Equity Shares approved by NSE, Designated Stock Exchange and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-Intimations and/ or notices will be dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Offer Account have been issued on June 23,2021 and payment to non-Syndicate brokers have been issued on June 24, 2021. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on June 24, 2021 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has received listing and trading approval from NSE and BSE and the trading will commence on June 28,2021
All capitalised terms used and not specifically defined herein shall have the same meaning as ascnbed to them in the Prospectus.
INVESTORS PLEASE NOTE
The details of the allotment made will be hosted on the website of the Registrar to the Offer, KFin Technologies Private Limited at www.kfintech.com and / or https://ris.kfintech.com/
All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the first/ sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below:
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KFin Technologies Private Limited |
| Selenium Tower B, Plot 31 & 32, Financial District, | |
| Nanakramguda, Serilingampally Mandal, Hyderabad - 500 032, Telangana | |
| Tel: 1- 800-309-4001 | |
| E-mail: dodladairy.ipo@kfintech.com | |
| Investor grievance E-mail: einward.ris@kfintech.com | |
| Website: www.kfintech.com and / or https://ris.kfintech.com/ | |
| Contact Person: M Murali Krishna | |
| SEBI Registration No.: INR000000221 |
| For DODLA DAIRY LIMITED | |
| On behalf of the Board of Directors | |
| Place: Hyderabad | Sd/- |
| Date: June 25, 2021 | Company Secretary and Compliance Officer |
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF DODLA DAIRY LIMITED
DODLA DAIRY LIMITED has filed the Prospectus with RoC and thereafter with SE8I and the Stock Exchanges. The Prospectus shall be available on websites of the websites of SEBI, BSE, NSE at www sebi.gov in, www.bseindia.com and www.nseindia.com. respectively, and is available on the websites BRLMs, i.e. at www.icicisecurities.com and www.axiscapital.co.in, respectively. Potential investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see "Risk Factors" beginning on page 19 of the Prospectus. Potential investors should not rely on the draft red herring prospectus dated February 15, 2021 for making any investment decision.
The Equity Shares have not been and will not be registered under the U S. Securities Act of 1933, as amended ("Securities Act") or any states secuirties United States, and unless so registered, and may not be offered or sold with m the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable U.S., state securities laws Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulator S and the applicable laws of each jurisdictions where such offers and sales are made. There will be no public offering in the United States.
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