New Delhi, Jun 27 (KNN) Dindigul Farm Product, a Tamil Nadu-based dairy processing company, made a strong market debut on BSE SME on Thursday, with its shares opening at a significant premium to the initial public offering (IPO) price.

The stock opened at Rs 102.60 on the Bombay Stock Exchange (BSE), representing a 90 per cent premium over its IPO price of Rs 54.

As of the latest trading update, the shares were quoting at Rs 107.73, marking a 99.50 per cent increase from the issue price. The stock hit its upper circuit limit of 5 per cent over the listing price.

Trading volume was robust, with approximately 14.26 lakh shares changing hands during the session. The stock reached a high of Rs 107.73 and a low of Rs 102.60.

The company's IPO, which was open for subscription from June 20 to June 24, 2024, saw strong investor interest, being oversubscribed 134.63 times.

The offering comprised a fresh issue of 64,50,000 equity shares, with a price band of Rs 51 to Rs 54 per share.

Prior to the public offering, Dindigul Farm Product raised Rs 9.90 crore from anchor investors on June 19, 2024, allotting 18.34 lakh shares at Rs 54 per share to five investors.

The IPO proceeds are earmarked for meeting working capital requirements, funding capital expenditure, and general corporate purposes.

Following the share issuance, the promoter and promoter group shareholding has been diluted to 59.36 per cent from 80.66 per cent.

Dindigul Farm Product specialises in processing milk and skimmed milk to produce various dairy ingredients, including milk protein concentrates, skimmed milk powder, and whey protein concentrate.

The company operates under the brand name EnNUTRICA and serves a diverse customer base across different industries from its 15-acre processing facility in Dindigul, Tamil Nadu.

For the period ending December 23, 2023, the company reported revenue from operations of Rs 68.74 crore and a net profit of Rs 5.88 crore.

The strong market response to Dindigul Farm Product's listing reflects investor confidence in the dairy sector and the company's growth prospects.

(KNN Bureau)