Milky Mist Dairy Food's Rs 1,553 crore IPO, priced at Rs 140 per share, witnessed robust investor interest, being subscribed 56.12 times during its subscription period from August 11 to August 13. The IPO included a fresh issue of 10.20 crore shares worth Rs 1,428 crore and an Offer for Sale of 89 lakh shares valued at Rs 125 crore.
The retail portion of the IPO was subscribed 8.41 times, while qualified institutional buyers (QIBs) showed significant interest with a subscription rate of 155.83 times. Non-institutional investors (NIIs) subscribed 34.91 times. Prior to the IPO, Milky Mist Dairy Food raised Rs 465.29 crore from anchor investors by allotting 3.32 crore equity shares at the upper price band of Rs 140 per share.
The IPO was managed by JM Financial Ltd. as the book-running lead manager, with Kfin Technologies Ltd. serving as the registrar. The funds raised will be primarily used to strengthen the company's balance sheet and fund expansion projects. Milky Mist Dairy Food plans to allocate Rs 496.86 crore to repay or prepay certain borrowings and Rs 469.24 crore for capital expenditure at its Perundurai manufacturing facility.
Additionally, Rs 155.31 crore will be invested in deploying visi coolers, ice cream freezers, and chocolate coolers to enhance distribution and market presence. The remaining proceeds will be used for general corporate purposes, focusing on deleveraging, expanding production capabilities, and enhancing market reach.
Milky Mist Dairy Food reported a 34% increase in total income to Rs 3,145.01 crore in FY26, with profit after tax (PAT) surging 176% to Rs 127.01 crore. The company, incorporated in July 2014, specializes in premium and value-added dairy products under the Milky Mist brand and other sub-brands.
Background
Milky Mist Dairy Food has established itself as a prominent player in the Indian dairy industry, leveraging its integrated farm-to-consumer model and technology-driven manufacturing. The company's strategic focus on expansion and innovation has contributed to its strong financial performance and market position.
As Milky Mist Dairy Food prepares for its market debut, investors will be keenly watching the stock's performance, especially given the strong subscription rates and the company's strategic plans for growth and expansion.
