TPG-backed Dodla files for India IPO

According to the prospectus, the offer will comprise a fresh issue of shares for up to INR1.5 billion ($21.4 million), along with up to 9.5 million shares from existing shareholders, including 7.8 million shares held by TPG Growth. Pricing for the shares has not been announced. Dodla will use the proceeds from the fresh issue to repay its debt and to upgrade its facilities with new equipment.

Founded in 1995, Dodla sells fresh milk and other dairy products such as cheese, butter, ice cream, and ghee across nine states in India, as well as in Uganda and Kenya. It manages 11 processing facilities with a total installed capacity of 1.29 million liters per day (mlpd) as of March 2018, and plans to open a 12th facility in 2019.

Dodla primarily sources its milk through a network of about 221,000 smallholder farmers across seven thousand villages. The company provides its supplier farmers with a number of support programs such as providing credit through local banks for development of their farms, procuring discounted cattle feed, and arranging veterinary clinics and training camps. It sees this strategy of long-term engagement as a crucial factor in its long-term success.

For the year ended March 2018, Dodla reported INR16 billion in revenue, up from INR14.5 billion the year before. Over the same period net profit rose from INR465 million to INR543 million.

TPG Growth currently holds 15 million shares in Dodla, giving it a 27% stake. The firm invested in Dodla last year, committing $50 million through the Rise Fund, a social and environmental impact investment vehicle launched in 2016. The transaction provided a full exit for Proterra Investment Partners, an alternative investment unit of agribusiness giant Cargill that spun out in 2015 to pursue agriculture-focused investments independently.

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• Topics
• South Asia
• Industrials
• IPO
• India
• Agriculture
• TPG Capital
• Exit