ICL Organic Dairy Products Ltd IPO

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(i) The Company is formed in the year 2013 as “ICL Organic Dairy Products Private Limited, which later on converted in Public company in 2019, before coming for IPO. The company is promoted by Mr. Roop Kishore and Mr. Avadhesh Kumar Gola. Both the brothers Mr. Roop Kishore Gola and Mr. Avadhesh Kumar Gola belong to a farmer family and with agricultural background, they initiated the Dairy business and availed the benefit of Kamdhenu Yojna of Uttar Pradesh Government to set up the Dairy in 2013 at Bareilly.

(ii) ICL Organic is doing the business of milk procurement and direct distribution.  Milk procured from villages is directly distributed to Sweet Shops, Retailers, different establishments and households. The company is mainly active in the District of Bareilly and the adjoining district of Badaun, a huge milk producer area as well as Pilibhit which is just 30 to 40 km away from the operational area and covered approximately 30 villages at present.

(ii) Milk produced from the facility at Khajuai, Akaha Ghanni Road, Bareilly, Uttar Pradesh – 243001 are distributed to premium customers. Milk distribution is done by taking vehicles on rent.

Objects of the ICL Organic Dairy Products Ltd IPO:

The object of raising 4.08 Crores from the IPO is the following. A) To meet the working capital requirement. B) To meet the issue expenses. C) General Corporate Purposes.

ICL Organic Dairy Products Ltd IPO Details:

Open Date: Jan 31 2020
Close Date: Feb 07 2020
Total Shares: 2,040,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed issue
Issue Size: 4.08 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 20 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 12 2020

Promoters And Management:

1) Mr. Roop Kishore Gola 2) Mr. Avadhesh Kumar Gola

Financials of ICL Organic Dairy Products Ltd IPO:

( Fig. in Lakhs )
Year Revenue EBITDA OPM PAT NPM Shares F.V. EPS NW RONW
2017 252.00 7.31 3% 5 2% 0.1 10 50.000 9.81 51%
2018 1,207.00 47.00 4% 34.00 2.8% 0.1 10 340.000 44.74 76%
2019 1,572.00 38.00 2% 27.00 1.7% 11.24 10 2.401 295.00 9%
Post-IPO 1,572.00 38.00 2% 27.00 1.7% 60.01 10 0.450 1,154.00 2%

Comparison With Peers:

Name of the Company F.V. EPS P/E Ratio RONW
Prabhat Dairy 10 5.00 33.90 7%
Heritage Foods 5 17.80 20.40 11%
Parag Milk Foods 10 14.50 10.60 16%
Umang Dairies 5 2.30 13.70 9%
ICL Organic Dairy Products Limited 10 0.45 44.44 2%
Note: The above comparison is made based on FY18-19 financials.

Recommendation on ICL Organic Dairy Products Ltd IPO:

Review and Recommendation of InvestorZone is:2/10 [ The asking P/E is 44 based on FY19 financials, which is very high. The company has inconsistent financial performance. The company has poor RONW. The company is working in a highly competitive environment, which is shown in its poor operational and profit margins.]

Lead Manager of ICL Organic Dairy Products Ltd IPO:

  1. Finshore Management Services Limited

Registrar of ICL Organic Dairy Products Ltd IPO:

  1. Cameo Corporate Services Limited

Bid Details of ICL Organic Dairy Products Ltd IPO as on
03 Feb 2020 | 12:12:01 PM

Category No.of shares offered No. of shares bid
969,000 1,968,000
969,000 264,000
102,000 102,000
2,040,000 2,334,000
QIBs No
QIBs+HNIs Subscription 2.03X
Retail Subscription 0.27X
Total Subscription 1.15X

Discussion on ICL Organic Dairy Products Ltd IPO:

      Due to some technical issue, the same is not being updated.

    Very good peers are available in the listed market, that too at an attractive valuation.