Dindigul Farm Product shares list at 90% premium on BSE SME platform

The shares of Dindigul Farm Product debuted on the BSE SME platform with a premium of 90% on Thursday. The stock was listed at Rs 102.60 as against an issue price of Rs 54.

Ahead of the debut, the company's shares were trading with a premium of Rs 65 in the unlisted market.

The IPO, which was completely a fresh equity issue of 64.5 lakh shares, received robust response from investors with an overall subscription of nearly 200 times at close.

The net proceeds from the public offer will be used for funding capital expenditure, working capital requirements and other general corporate services.

Dindigul Farm Product 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.

Its processing facility is located at Dindigul and is spread over 15 acres. The company follows and complies with requirements of various relevant authorities such as FSSAI, Halal, Kosher, Export Import Council of India, Europe Regulations in respect of certain of our products.

The company's procurement operations consist of an average procurement of approximately 50,000 litres per day of milk directly from farmers and around 30,000-1,00,000 litres per day of whole milk from open market or third-party suppliers. As on the date of the RHP, it has built a network of more than 150 village collection centres, with direct access to more than 4,000 farmers and more than 50 dairy farms.

As a result of prudent policy interventions, India ranks first among the world’s milk producing nations, achieving an annual production of 221.06 million tonnes during the year 2021-22 as compared to 209.96 million tonnes during 2020-21.

For the period ended December 2023, the company clocked revenues of Rs 68.74 crore and net profit of Rs 5.88 crore.

Beeline Capital Advisors acted as the lead manager to the issue and Link Intime India was the registrar.

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