Dodla Dairy Limited has acquired Karnataka’s Shree Krishna Milks Private Limited for Rs 50 crore to expand its business. Dodla Dairy has done this deal within 10 months of IPO launch. Let us tell you that the IPO of Dodla Dairy was launched in the month of June 2021.
Here are the details of the deal: The Dodla Diary, in an information sent to the stock exchange, said that the company has entered into an agreement to acquire Shri Krishna Milks on the basis of decline in purchases. According to the company, the acquisition is expected to be completed in about two months from the date of agreement and will be in cash form.
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Let us tell you that Krishna Milks Private started its business in 1989. It was the first private sector dairy company in Karnataka. The company’s sales were Rs 67.27 crore in the financial year 2020-21. This means to say that the 33-year-old company has now become of Dodla Dairy.
The response to the IPO was: The IPO of Dodla Dairy received an overwhelming response. The company had kept the issue price of the IPO at Rs 428, while the stock went up to Rs 609 on the day of listing. In percentage terms, the return was 42%. Presently also the stock is trading above its issue price.