DINDIGUL FARM PRODUCT LIMITED to open on 20 th June 2024

Dindigul Farm Products IPO is a 6450000 equity share with a price band of Rs.51-54 per equity share at the face value of Rs.10. The IPO is open from 20 -24th June, 2024. 

Dindigul Farm Products Limited is primarily engaged in processing of Whole milk and skimmed milk to make dairy ingredients including milk protein concentrates, skimmed milk powder, dairy whitener, whey protein concentrate, milk whey powder, casein, unbranded cream, butter and fat-filled powders for infant milk formula. The processing facility is situated at Dindigul, Tamil Nadu, and India and is spread over 15 acres. 

Dindigul Farm Product Limited IPO details:

Total Equity Shares- 64,50,000

Price Band – Rs.51-54

Issue type- Fresh issue-book build 

Face Value- Rs.10

Lot Size- 2000

Market maker quota- 3,26,000 equity shares

Retail quota- 21,44,000 equity shares

HNI Quota- 9, 20,000 equity shares

Net QIB Quota- 12,26,000 equity shares

IPO size (Rs.in crs) – 34.83 (at upper price band)

The company plans to allocate the net proceeds from the issue to the following purposes:

Funding Capital Expenditure

To meet working capital requirement

About the Company

The company is primarily engaged in processing of skimmed milk from whole milk to make dairy ingredients and has a diversified product basket. The company procures 50,000 litres of milk directly from farmers and around 30,000-1, 00,000 litres of whole milk from open market or third party suppliers. The company has built a network of more than 150 village collection centres, with direct access to more than 4000 farmers and more than 50 dairy farms. The company products are marketed under the brand Ennutrica. In Fy2022-23, the company has sold products in 15 states in India and 3 countries internationally and aims to expand its international operations by looking to enter more ASEAN and European countries.

FINANCIAL PERFORMANCE:

On the financial performance front, for the last three fiscals, the company has posted a total Revenue/net profit/ – (loss) of Rs. 18.40 cr. / Rs. – (4.62) cr in FY2021, Rs. 28.45 cr. / Rs. – (4.16) crin FY2022, and Rs. 81.99 cr. / Rs. 5.16 cr in FY2023. For 267 days of FY24 ended on December 23, 2023, it earned a net profit of Rs. 5.89 cr. on a total income of Rs. 68.76 cr. For the last three fiscals, it has reported an average EPS of Rs. – Rs. 0.84, and an average RoNW of (Not ascertainable) %. The issue is priced at a P/BV of 23.58 based on its NAV of Rs. 2.29 as of December 23, 2023, and at a P/BV of 3.09 based on its post-IPO NAV of Rs. 17.46 per share (at the upper cap).

The company has posted PAT margins of FY2021 : – (26.20) %, FY2022: – (14.71) %, FY2023: 6.33%, 267D-FY24- 8.57%.

Book Running Lead Manager to the issue is Beeline Capital Advisors Private Limited, and the Registrar to the issue is Link Intime India Private Limited.