Dodla Dairy & Arohan Financial Services Gets Sebi's Nod for IPO

Non-banking financial major Arohan Financial Services and Dodla Dairy have obtained capital markets regulator Sebi's go-ahead to float initial share-sales.

Both the companies have filed their preliminary papers with Sebi on February 15 and got its observations on April 23, an update with Sebi presented on Monday.

However, Sebi's observation is very essential for any organisation to launch public issues like follow-on public offer (FPO), initial public offer (IPO), and rights issue.

Arohan Financial Services intends to raise between 1,750 crore and 1,800 crore, according to the market sources.

The public offer of the Aavishkaar Group promoted the firms comprises a fundraise through a fresh issuance of shares amounting to 850 crore, as per to Draft Red Herring Prospectus (DRHP).

Furthermore, the firm would have an offer for sale of 2,70,55,893 equity shares by Maj Invest Financial Inclusion Fund II K/S, Michael & Susan Dell Foundation, Tano India Private Equity Fund II, TR Capital III Mauritius, and Aavishkaar Goodwell India Microfinance Development Company II Ltd.

The net profits from the fresh issue would be used for augmenting the firm’s capital base to address its future capital requirements.

Also, Edelweiss Financial Services Ltd, ICICI Securities Ltd, Nomura Financial Advisory and Securities (India) Private Limited, and SBI Capital Markets Limited are the managers of the issue.

Dodla Dairy's IPO consists of fresh issuance of shares that are worth up to 50 crore, moreover, an offer for sale of up to10,085,444 equity shares by TPG Dodla Dairy Holdings Pte Ltd, Dodla Sunil Reddy, Dodla Deepa Reddy, and Dodla Family Trust, according to the draft papers.

Furthermore, Profits from the issue would be utilized for payment of certain borrowings, funding capital expenditure requirements of the firm and for general corporate purposes.

Likewise, Axis Capital and ICICI Securities would manage the company's initial share sale.

The firm’s operations in India are primarily across the four south Indian states of Andhra Pradesh, Karnataka, Telangana, and Tamil Nadu. Its international processes are based in Uganda and Kenya. And the equity shares of both organisations would be listed on NSE and BSE.