New Delhi: Hyderabad-headquartered Dodla Dairy Limited has announced the acquisition of Karnataka’s Sri Krishna Milks Private Limited for Rs 50 crore. The purpose of this acquisition is to expand Dodla Dairy.
Many dairy companies across the country have increased the prices of milk in the last one-and-a-half months. In the midst of this, this news of acquisition from the dairy sector of South India has come. This acquisition is being considered as a big step in the dairy sector.
Here are the details of the deal
Dodla Dairy has said in the information given to the stock exchange that it has entered into a business transfer agreement to acquire the business of Shri Krishna Milks on a slump purchase basis. This deal will be in cash. In the language of business, it is called a slump purchase, when a lump sum value of the company’s assets is not applied separately. The acquisition is expected to be completed in two months. Dodla Dairy is the third largest private sector company in terms of daily milk purchase. Apart from milk, curd, ghee, paneer, the company also manufactures and sells butter milk, flavored milk, doodh peda, ice cream and sweets made from milk.
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Dodla’s IPO got overwhelming response
Dodla Dairy has done this deal within 10 months of the launch of the IPO. Let us tell you that the IPO of Dodla Dairy was launched in the month of June 2021. Through this the company had raised Rs 520 crore. The IPO of Dodla Dairy got an overwhelming response. The company had kept the issue price of the IPO at Rs 428, while its share had reached Rs 609 on the day of listing. Presently also the stock is trading at more than its issue price. Dodla Dairy Limited’s stock climbed 20 percent on Monday with the announcement of the acquisition. The company’s stock gained 19.23 per cent to Rs 548 on the BSE and 19.99 per cent to Rs 548.45 on the National Stock Exchange.
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Shree Krishna Milks Private Limited was established in 1989 and is the first private dairy company in Karnataka. It mainly does the business of buying milk and making and selling dairy products. The turnover of the company in the financial year 2020-21 was Rs 67.27 crore.
Tags: company, Hyderabad, Karnatka, Milk
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