Dangee Dums Ltd Aims to Raise Rs 20.07 cr through Initial Public Offering

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Issue opens on 20th August 2018 and closes on 24th August 2018

Bilkulonline.com
Ahmedabad,  Aug 17: Dangee Dums Ltd, the manufacturer of
premium and designer cakes and pastries based in Ahmedabad, is set to
come out with its Initial Public Offering (IPO) of 27,12,000 (27.12
lakh) equity shares, with a face value of Rs 10 each, at a fixed price
of Rs 74 per share. The company operates out of 81 dedicated retail
outlets across major cities of Gujarat.

With a view to repay its secured borrowings, in addition to purchase
of fixed assets and addressing general corporate requirements, Dangee
Dums Ltd, looks at raising a sum of Rs 20.07 crore through the SME
IPO. The IPO will be listed on the National Stock Exchange (NSE)’s
EMERGE platform.

The issue will open on 20th August, 2018 and close on 24th August,
2018. The minimum lot size of shares would be 1,600 retail shares. The
same for high networth individuals (HNI) would be 3,200 retail shares
and further ahead, in multiples of 1,600. The issue comprises of the
26.42% of the post-issue paid-up capital.

Sharing details about the company’s operations, Nikul J Patel,
Chairman and Managing Director of the company, who is also one of the
key promoters of the company, said, “Our unique offerings in premium
range of cakes and pastries in addition to our strategic expansion,
led us to rapidly expand into major cities of Gujarat.”

“All our products are manufactured at our 25,000 square-feet facility
located at Devraj Industrial Park in Piplaj, Ahmedabad. We reach out
to our customers through our wide distribution network and commitment
to quality,” he added.

Nikul Patel, Chairman & MD Dangee Dums Ltd speaking about the upcoming SME IPO of Dangee DumsMohan Motiani, CEO, Dangee Dums Ltd

Commenting on fund utilisation Ravi H. Patel, Whole-time Director,
Dangee Dums Ltd, said “Continuing with our expansion strategy, we are
in the process of exploring other markets and widening its footprint
outside Gujarat as well.”

“We also intend to open new outlets in the existing markets, to
increase the availability of our products. At the same time, we will
also be focussing on introducing new product lines based on the
requirements and demand of our customers,” he added.

With its wide range of offerings in premium and designer cakes and
pastries in 16-17 different varieties, Dangee Dums Ltd currently
operates across more than 80 outlets spread across five major cities
of Gujarat including Ahmedabad, Gandhinagar, Anand, Vadodara, and
Surat. The company has total revenue of Rs 36.58 crore which has
increased at the compound annual growth rate (CAGR) of 87.43% over the
last five years i.e. in the period from 2014 to 2018.

Ahmedabad Based Merchant Banker Monarch Networth Capital Ltd is a lead
manager of this public issue and Bigshare Services Pvt. Ltd is the
registrar.