Dairy Producer Milky Mist Expected to Enter Capital Markets in Early August

Dairy producer Milky Mist Dairy Food Ltd is anticipated to unveil its initial public offering (IPO) during the first week of August, according to sources familiar with the situation.

The prospective public issue is set to be the largest IPO from an Indian dairy company. Competitors in the industry include Parag Milk Foods Ltd, Hatsun Agro Product Ltd, and Dodla Dairy Ltd.

The company’s entry into the public market follows a pre-IPO funding round where it secured ₹482 crore in May this year from Jongsong Investments Pte. Ltd., a wholly-owned subsidiary of Temasek Holdings.
With the pre-IPO investment set at ₹139.76 per share, Milky Mist was valued at approximately ₹9,300 crore. After this round, the company aims to raise ₹1,553 crore through its IPO, which will consist of a fresh share issue along with an offer for sale (OFS) by its promoters, sources indicated.

Previously, Milky Mist aimed to raise ₹2,035 crore via its first public offering, as per the draft papers.

Funds from the fresh issue are intended for repaying loans and supporting the expansion and modernization of its manufacturing facility in Perundurai, which includes establishing plants for whey protein concentrate, yogurt, and cream cheese.

The company also plans to enhance its cold-chain infrastructure with the introduction of visi coolers, ice cream freezers, and chocolate coolers, along with fulfilling general corporate needs.

Founded in Erode, Tamil Nadu, Milky Mist stands as one of India’s leading premium dairy brands, focusing solely on value-added dairy products. Its product range includes paneer, cheese, curd, yogurt, butter, ghee, ice cream, and various dairy-based items. The company does not engage in the liquid milk sector.

JM Financial, Axis Capital, and IIFL Capital Services are the lead managers for the issue.