DINDIGUL FARM PRODUCT (EnNutrica) IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

EnNutrica Proteins Division, Dindigul Farm Product Pvt Ltd., manufactures World Class Dairy Ingredients with excellent Hygiene Standards, made from 99.98% Farm Fresh, Grass Fed, Carefully & Responsibly Sourced Cow's Milk. 

Dindigul IPO, a Book Built issue amounting to ₹34.83 crores, consisting entirely of a fresh issue of 64.5 lakh shares. The subscription period for the Dindigul IPO opens on June 20, 2024, and closes on June 24, 2024. The allotment is expected to be finalized on or about Tuesday, June 25, 2024, and the shares will be listed on the BSE SME with a tentative listing date set on or about Thursday, June 27, 2024.

The price band of Dindigul IPO is set at ₹51 to ₹54 per share, with a minimum lot size of 2000 shares. Retail investors are required to invest a minimum of ₹108,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (4000 shares), amounting to ₹216,000.

BEELINE CAPITAL ADVISORS PRIVATE LIMITED is the book-running lead manager, LINK INTIME INDIA PRIVATE LIMITED is the registrar. SPREAD X SECURITIES PRIVATE LIMITED is also the market maker for Dindigul IPO.

Grey Market Premium (GMP) of Dindigul Farm Product Limited (EnNutrica)

The Grey Market Premium is expected in the range of ₹55 - ₹60  based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Dindigul Farm Product Limited (EnNutrica) IPO Live Subscription Status Today

As of 02:18 PM on 24 June 2024, the Dindigul Farm Product Limited (EnNutrica) IPO live subscription status shows that the IPO fully subscribed on the day 3. The Dindigul Farm Product Limited (EnNutrica) IPO subscriped 27 times at cut off price on BSE. Check the Dindigul Farm Product Limited (EnNutrica) IPO Live Subscription Status Today at BSE

Objectives of Dindigul Farm Product Limited (EnNutrica)

Dindigul Farm Product Issue Proceeds from the Fresh Issue will be utilized towards the following objects :
1. Capital Expenditure
2. Working Capital Requirements
3. General Corporate Purposes

Refer to Dindigul Farm Product Limited RHP for more details about the Company.

Check latest IPO Review & analysis, Live GMP today, Live Subscription Status Today, Share Price, Financial Information, latest IPO news, Upcoming IPO News before applying in the IPO.

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DINDIGUL FARM PRODUCT (EnNutrica) IPO Details

IPO Date June 20, 2024 to June 24, 2024
Listing Date June 27, 2024
Face Value ₹10
Price ₹51 to ₹54 per share
Lot Size 2000 Shares
Total Issue Size 6,450,000 Equity Shares (aggregating to ₹34.83 Cr)
Fresh Issue 6,450,000 Equity Shares (aggregating to ₹34.83 Cr)
Offer for Sale Nil
Issue Type Book Built Issue IPO
Listing At BSE SME
Share holding pre issue 1,79,79,280
Share holding post issue 2,44,29,280

DINDIGUL FARM PRODUCT (EnNutrica) IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 2000 ₹108,000
Retail (Max) 1 2000 ₹108,000
HNI (Min) 2 4000 ₹216,000

DINDIGUL FARM PRODUCT (EnNutrica) IPO Timeline (Tentative Schedule)

IPO Open Date Thursday, June 20, 2024
IPO Close Date Monday, June 24, 2024
Basis of Allotment Tuesday, June 25, 2024
Initiation of Refunds Wednesday, June 26, 2024
Credit of Shares to Demat Wednesday, June 26, 2024
Listing Date Thursday, June 27, 2024
Cut-off time for UPI mandate confirmation 5 PM on 24 June 2024

DINDIGUL FARM PRODUCT (EnNutrica) IPO Reservation

Investor Category Shares Offered Reservation %
QIB Shares Offered 30,60,000 Not More than 50% of the Net Issue
Retail Shares Offered 21,44,000 Not Less than 35% of the Net Issue
Non-Institutional Shares Offered 9,20,000 Not Less than 15% of the Net Issue
Market Maker Portion 3,26,000 -

DINDIGUL FARM PRODUCT (EnNutrica) IPO Promoter Holding

Share Holding Pre Issue 80.66%
Share Holding Post Issue 59.36%

DINDIGUL FARM PRODUCT (EnNutrica) IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed

About DINDIGUL FARM PRODUCT (EnNutrica) Limited

EnNutrica Proteins Division, Dindigul Farm Product Pvt Ltd., is Established In 2011 and has started the Production of Skimmed Milk Powder, Milk Protein Concentrates, Milk Whey Powder, Whey Powder, Whey Protein Concentrates, Evaporated Milk, Whole Milk Powder, Dairy Whitener, and Casein from Skimmed Milk By 2015. The Procurement of milk is from Raaj Group’s Milk Division “Raaj Milk“, a 250,000 Litre milk per day Liquid Milk Dairy viz., A.R Dairy Food Pvt Ltd (Estd: 1998) at Dindigul, 50 Kms Away From The Dindigul Farm Product Pvt Ltd (DFPPL) and has a well-established network of 14 Chilling Centers And effectively have a procurement zone of almost 18 Different Districts in Tamilnadu.

The Packed Liquid Retail Pouch Milk and Curd, is Marketed in Tamilnadu (Brand: Raaj) And Kerala (Brand: Malabar). The Proteins are supplied to Businesses in the name of Formula 7+, Formula 8 And Formula 8+. The High Quality Proteins are also available directly via The ActivDay Retail Packs. The Retail Version of the Proteins are named PRIME, CHOCO, Premium And JUNIOR to cater to all customers. 

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. They have built a network of more than 150 village collection centers, with direct access to more than 4,000 farmers and more than 50 dairy farms. They procure whole milk either directly from the farmers and through third party suppliers.

Dindigul, market their products under the brand name ENNUTRICA, Activday and currently supply to a wide number of customers from different industries. For financial year 2022-23, they have sold products in more than 15 states domestically and 3 countries internationally. However, they aim to expand their international operations by looking to enter more ASEAN and European countries. They mainly supply products to Dairy Industry, Food Ingredients industry, nutrition industry, dairy industry, ice cream industry and baking industry.

INDIAN DAIRY INDUSTRY

The Dairy sector in India has grown substantially over the years. 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 recording a growth rate of 5.29%. FAO Food Outlook (November 2022) reported 1.34% increase in world milk production from 912.6 million tonnes in 2020 to 924.8 million tonnes in 2021 (estimates). This represents a sustained growth in the availability of milk and milk products for the growing population.

The total size of dairy market was about Rs. 13.17 lakh crore in 2021. The dairy market has been growing at about 15 % per annum during last 15 years and is expected to reach a market size of about Rs. 30.84 lakh crore by 2027 as per International Market Analysis and Consulting Services Private Ltd. (IMARC) 2021 report. The liquid milk market represents about half of the total dairy market in the country. It is projected that market for liquid milk will grow by about 16% during next 5-6 years while for products like cheese, flavoured milk, lassi, butter milk, whey and organic milk will grow at more than 20 % per annum. The annual growth of other traditional dairy products like paneer, ghee, ice-cream, khoa, curd, etc. would be in the range of 11 % to 20%.

In terms of volume, the total household consumption of milk and milk products was 16.1 crore tonnes. This is expected to grow to 26.7 crore tonnes by 2030. Milk production in the country in 2021-22 has been estimated at about 22 crore metric tonnes registering a growth of 6% per annum during last 5 years. The per capita availability of milk has reached to 444 grams per day in 2021-22. The milk production is estimated to reach about 30 crore tonnes by 2030 as per NITI Aayog report. Therefore, strengthening of dairy processing infrastructure is required for catering to the growing dairy market in the country.

SHARE OF MILK PRODUCTION AND SUPPLY

India, about 46%
of the milk produced is either consumed at the producer level or sold to nonproducers in the rural area, he balance 54% of the milk is available for sale to organised and unorganised players. Organised sector comprise of Government, Producers’ Owned Institutions (Milk Cooperatives & Producer Companies) and Private players which provides fair and transparent system of milk collection round the year at the village level. Unorganized/informal sector involves local milkman, dudhias, contractors etc. and they are mostly found to be opportunistic, as there is no uniformity of milk price paid to producers and it varies depending upon the situation. Possibility of adulteration of milk is higher among these unorganized groups. In the areas where competition is high and presence of formal sector is strong, they generally give higher prices and at the same time, they don’t offer remunerative prices to the producers where organized sector is not present.

ROLE OF DAIRY DIVISION

▪ Increase in livestock production and productivity and increasing share of organised sector through improvement in procurement, processing and marketing of milk and milk products.
▪ Trade policy relating to milk & milk products.
▪ Monitoring of milk situation and Policy decisions to maintain supply of milk & milk products to the consumers and reasonable prices for milk to the milk producers.
▪ Approval of schemes/projects, review of progress, re-appropriation of physical & financial targets, audit and inspection, scheme/project governance, signing of loan agreements with external/ domestic agencies, hedging liability, repayment of external loans etc.
▪ Quality improvement of milk and milk products in compliance to FSSAI Act.
▪ Formulation of national action plan and policy for implementation.
▪ Collection and updation of requisite data for suitable policy interventions.

DOMESTIC MILK SCENARIO : 
The average milk procurement during the month of November, 2022 was about 5.45% higher while liquid milk sale was about 8.37% higher when compared to November 2021. During November 2022, the stock of Skimmed Milk Powder (SMP) in cooperative sector is lower by about 55% and the stock of white butter decreased by about 78%. This scenario is mainly due to decreased procurement of milk and higher sales reported by Dairy Federation/Cooperatives.

DINDIGUL FARM PRODUCT LIMITED (ENNUTRICA) STRENGTHS & STRATEGIES

1. Diverse product basket
2. Milk procurement process
3. Manufacturing Facility
4. Quality Assurance and Standards
5. Experienced Promoters and Management Team
6. Continue to invest in their manufacturing capabilities thereby expanding their offerings
7. Expand their presence across geographies and diversify their customer base
8. Focus on increasing operational efficiencies to improve returns

DINDIGUL FARM PRODUCT LIMITED (ENNUTRICA) RISK FACTORS & CONCERNS

1. Real or perceived product contamination could result in reduced sales.
2. The company do not receive firm and long-term volume purchase commitments from their customers.
3. Company's proposed expansion plan relating to their processing facility are subject to the risk of unanticipated delays in implementation, cost overruns.
4. Dindigul generate their major portion of sales from their operations in certain geographical regions especially Tamil Nadu, Gujarat and Himachal Pradesh.
5. The business is subject to seasonal volatility which may contribute to fluctuations in their results of operations and financial condition.
6. Their Corporate Promoter Indrayani Biotech Limited does not possess the relevant experience in dairy industry.
7. Their processing operations are dependent upon availability of skilled and unskilled labour.

DINDIGUL FARM PRODUCT (EnNutrica) Limited Financial Information (Restated Consolidated)

Amount in (₹ in Lakhs)

Period Ended Dec 31, 2023 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Reserve of Surplus 1,359.46 3,076.66 3,600.92 3,180.84
Total Assets 5,123.46 2,899.84 2,496.45 2,995.07
Total Borrowings 2,263.87 2,398.37 2,579.25 2,716.23
Fixed Assets 1,169.42 1,277.80 1,195.60 1,399.64
Cash 1,140.79 4.81 3.30 59.44
Net Borrowing 1,123.08 2,393.56 2,575.95 2,656.79
Revenue 6,874.75 8,157.74 2,831.88 1,763.13
EBITDA 934.76 927.28 -153.34 -83.93
PAT 588.40 525.79 420.08 461.19
EPS 4.09 3.59 2.90 3.21

Note 1:- ROCE & ROE calculation is based on 31st Dec, 2023 Data, given in RHP.
Note 2:- Pre EPS and Post EPS is based on 31st Mar, 2023 Data, given in RHP.
Note 3:- RoNW calculation is based on 31st Dec, 2023 Data, given in RHP.
Note 4:- Price to Book Value is calculated based on After completion of offer price at Cap Price.

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) ₹3.59
EPS Post IPO (Rs.) ₹2.15
P/E Pre IPO 15.04
P/E Post IPO 25.12
ROE -0.95%
ROCE 0.62%
P/BV 3.24
Debt/Equity 4.63
RoNW 149.49%

DINDIGUL FARM PRODUCT (EnNutrica) Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Dindigul Farm Products Limited ₹2.15 0.62% -0.95% 25.12 3.24 4.63 149.49%
Dodla Dairy Limited ₹28.0 22.1% 15.5 % 38.2 5.42 0.04 22.1%
Parag Milk Foods Limited ₹7.59 11.0% 10.6% 24.1 2.36 0.71 11.0%
Modern Dairies Limited ₹14.7 - - 7.93 - - -
DINDIGUL FARM PRODUCT (EnNutrica) Limited Contact Details

DINDIGUL FARM PRODUCT LIMITED

2/52-3, Pillaiyarnatham Pithalaipatty Post, Dindigul, Tamil Nadu, India, 624002
Contact Person : Mr. Gurunathan Uma Kanth Narayanan
Telephone : 045 4429 0099/ +91 94980 99930
Email Id : cs@aasaanloans.com
Website : http://cs@ennutrica.com

DINDIGUL FARM PRODUCT (EnNutrica) IPO Registrar and Lead Manager(s)

Lead Manager : BEELINE CAPITAL ADVISORS PRIVATE LIMITED
Contact Person : Mr. Nikhil Shah
Telephone : 079 4918 5784
Email Id : mb@beelinemb.com
Website : https://beelinemb.com/

Registrar : LINK INTIME INDIA PRIVATE LIMITED
Contact Person : Ms. Shanti Gopalkrishnan
Telephone : +91 810 811 4949
Email Id : dindigulfarm.ipo@linkintime.co.in
Website : https://www.linkintime.co.in/

DINDIGUL FARM PRODUCT (EnNutrica) IPO Review

EnNutrica procure milk directly from Farmers who have Free Range Cattle Farm and more organically oriented to produce milk from cattle by feeding the cattle with a wide variety of Nutritious food from different sources paving way for premium milk proteins quality. They work closely with the farmers to make sure that the animals are fed in the right way. They educate the farmers on best feeding practices and best rearing practices to train them and monitor them continuously with a team of Veterinarian Doctors to ensure that the final product is at its best performance.

The Promoters of Dindigul Company are Rajadharshini Rajasekaran, R Rajasekaran and Indrayani Biotech Limited, R Rajasekaran has over experience of 20 years in the dairy processing industry and has played an instrumental role in expanding the domestic operations of the Company. Rajadharshini Rajasekaran has an experience of more than 10 years in their Industry. 

Financially, Dindigul (EnNutrica) revenue increased from ₹1,763.13 Lakhs in FY21 to ₹2,831.88 Lakhs in FY22 and further revenue jumped to ₹8,157.74 Lakhs in FY23 and currently at ₹6,874.75 Lakhs for 9MFY24. Similarly, EBITDA saw losses in FY21 at ₹-83.93 Lakhs and ₹-153.34 Lakhs in FY22 but turnedaround at ₹927.28 Lakhs in FY23 and currently at ₹934.76 Lakhs for the 9MFY24. The shows loss of ₹462.02 Lakhs in FY21 and ₹416.58 Lakhs loss in FY22 but turned the table in FY23 to profit of ₹516.67 Lakhs and further profit in 9MFY24 of ₹588.89 Lakhs. This indicates steady financial performance.

For the Dindigul Farm IPO, the company is issuing shares at a pre-issue EPS of ₹3.59 and a post-issue EPS of ₹2.15. The pre-issue P/E ratio is 15.04x, while the post-issue P/E ratio is 25.12x against the industry P/E ratio of 14.84x. The company's ROCE for 9MFY24 is 0.62%, and ROE for 9MFY24 is -0.95%These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) indicates potential listing gains of 100% - 110%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to avoid the IPO for listing gains or long term Investment purposes.

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