IPO Ahead: Milky Mist Dairy Sets IPO Price Band at Rs 133–140; Key Dates, Issue Size And Details

Milky Mist Dairy Food Ltd, a producer of dairy goods, set its Initial Public Offering (IPO) price range between Rs 133 and Rs 140 per share on Thursday. The Rs 1,553 crore offering is scheduled to begin accepting subscriptions on August 11. According to a public statement from the company, the initial share sale will run until August 13, with anchor investor bidding occurring for a single day on August 10.

This public issue is poised to become the largest IPO ever launched by an Indian dairy firm. Other publicly traded companies in this industry include Parag Milk Foods Ltd, Hatsun Agro Product Ltd, and Dodla Dairy Ltd.

The total IPO value of Rs 1,553 crore comprises a fresh equity share issue worth up to Rs 1,428 crore and an Offer For Sale (OFS) valued at approximately Rs 125 crore.

Based on its preliminary draft documents, Milky Mist had originally intended to raise Rs 2,035 crore through its debut public offering. Given the established price band, the company's market valuation after the issue is projected to range between Rs 10,310 crore and Rs 10,778 crore.

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Share Reservation

This IPO follows a Rs 482 crore pre-IPO funding round completed in May by Jongsong Investments Pte Ltd, which is an indirect subsidiary of Temasek Holdings.

Where Will Proceeds Be Used 

The capital raised from the fresh issue will be allocated to debt repayment and the upgrading of the Perundurai manufacturing site, which includes new facilities for yoghurt, cream cheese, and whey protein concentrate.

Additionally, the firm intends to enhance its cold-chain network by adding chocolate coolers, ice cream freezers, and visi coolers, while using the remaining funds for general corporate needs.

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Established in Erode, Tamil Nadu, Milky Mist is a prominent premium dairy brand in India specialising in value-added products like ghee, paneer, cheese, and yoghurt. Notably, the company does not participate in the liquid milk market.

Axis Capital, IIFL Capital Services, and JM Financial are serving as the book-running lead managers, with KFin Technologies acting as the registrar for the issue.