This Consumer Food Company Stock Spurts 20% On Business Expansion: Check Details

Dodla Dairy shares in early trade on March 21, 2022 jumped a whopping 20% to hit the upper circuit limit of Rs. 548.45 per share on the NSE. On the BSE, the stock hit day's high price of Rs. 548.

The sharp gains are as a result of the company's acquisition of Sri Krishna Milks Private Limited. In the BSE filing dated March 19, 2022, the company said, "The company has executed a Business Transfer Agreement with Sri Krishna Milks Private Limited (SKMPL) for acquisition of Business as a 'going concern' and on a slump Purchase basis for consideration of Rs 50 crore". The business acquisition goes in sync with the company's expansion plans.

Sri Krishna Milks Private Limited is a dairy products (milk and milk products company).The company

incorporated on 23/03/1989 is the first Private Sector Dairy Company in the State of Karnataka. The company is mainly into procuring milk, manufacturing, and selling Dairy Products (Milk and Milk Products).

Further as per the details specified, the indicative time period for completion of acquisition is around 2 months from the date of agreement.

Dodla Dairy which debuted on the stock exchanges last year is a public limited company having its registered and corporate office at Hyderabad City of Telangana State in India. The company was incorporated in the year 1995 and production commenced in 1997. Currently,the company's procurement is centered in 5 states and products are available for purchase in 11 states.

From the IPO issue price of Rs. 428, the stock has currently moved to Rs. 524 per share, implying gains of 22%.