- Premium value-added dairy major fixes price band at ₹133-140; public issue opens August 11
- IPO to fuel capacity expansion, strengthen manufacturing footprint and accelerate nationwide growth
- CEO Dr K. Rathinam says superior-quality milk procurement, better farmer pricing and welfare remain the company’s cornerstone
- Value-added products—not liquid milk—give Milky Mist a sustainable edge over Amul, Aavin, Mother Dairy and other rivals
- Gujarat emerges as a key growth market with 114 distributors and dedicated daily truckloads ensuring freshness
- Maharashtra expansion under evaluation; no decision yet on manufacturing unit or product mix
R MANICKAVASAGAM
AHMEDABAD, AUG. 7
India’s booming appetite for premium dairy products is set to find a new investment avenue as Milky Mist Dairy Food Ltd. opens the gates to public investors with a ₹1,553-crore Initial Public Offering (IPO), seeking to transform decades of dairy excellence into long-term shareholder value. Backed by Singapore’s sovereign wealth fund Temasek, the fast-growing value-added dairy giant has fixed a price band of ₹133-140 per share, translating into a market capitalisation of ₹10,777.81 crore.
Built on farmer partnerships, product innovation and an integrated cold-chain network, Milky Mist believes its differentiated business model positions it well for sustained long-term growth in an increasingly competitive dairy market.
Milky Mist’s Initial Public Offering will open for subscription on Tuesday, August 11, 2026, and close on Thursday, August 13, 2026, with the anchor investor portion opening on Monday, August 10.
The public issue comprises a fresh issue of 10.20 crore equity shares aggregating ₹1,428 crore and an Offer For Sale (OFS) of 0.89 crore equity shares worth ₹125 crore, taking the total issue size to ₹1,553 crore.
The equity shares proposed to be listed on both the BSE and NSE.
The company proposes to utilise ₹496.86 crore from the fresh issue proceeds towards repayment or prepayment of borrowings, ₹469.24 crore for expansion and modernisation of its Perundurai manufacturing facility, and ₹155.31 crore for deployment of visi coolers, ice cream freezers and chocolate coolers to strengthen its retail presence and cold-chain infrastructure. The balance will be earmarked for general corporate purposes.
Farmer Welfare at the Core
Addressing a query from Navjeevan Express on how Milky Mist ensures stable procurement of quality milk amid fluctuating milk prices and climate-related challenges, Whole-Time Director & Chief Executive Officer Dr K. Rathinam underlined the company’s unwavering commitment to dairy farmers.
“We undertake all welfare measures for milk producers like major cooperative dairies and give better pricing to buy high-quality milk.”
He said farmer welfare remains central to the company’s procurement philosophy, enabling Milky Mist to consistently source premium-quality milk while building long-term relationships with producers.
Competitive Edge Beyond Liquid Milk
Replying to another question on competition from established players such as Amul, Aavin, Mother Dairy, Hatsun Agro, Heritage Foods and Parag Milk Foods, Dr Rathinam said Milky Mist has consciously built its business around high-margin value-added dairy products.
“Milky Mist has evolved from a regional dairy brand into one of India’s leading value-added dairy companies. Unlike traditional dairy companies that depend heavily on liquid milk, Milky Mist has built its business around value-added products such as paneer, cheese, yogurt and butter. This product mix translates into superior margins and sustainable long-term growth.”
He said the company’s innovation-led product portfolio, premium positioning and integrated supply chain have enabled Milky Mist to establish a distinct identity in India’s organised dairy industry.
Maharashtra Plans Still on Drawing Board
Responding to a question on the company’s recently acquired land in Maharashtra, Dr Rathinam clarified that expansion plans are still under evaluation.
“No decision has yet been taken on setting up a unit and products as of now.”
Gujarat Emerges as a Strategic Market
Highlighting Gujarat’s importance in Milky Mist’s growth strategy, Dr Rathinam said the State has become one of the company’s strongest performing markets.
“We have 114 distributors in major cities like Surat, Vadodara, Ahmedabad and Rajkot apart from D-Mart and Reliance Retail in Gujarat. Being a major market, we deliver one truckload of our products daily through our own trucks to ensure quality and timely delivery.”
He said the dedicated logistics network enables the company to maintain product freshness while ensuring seamless supply across Gujarat’s organised retail ecosystem.
Milky Mist has invested significantly in automation, cold-chain logistics and product innovation, enabling it to cater to India’s rapidly expanding demand for premium dairy products. The company believes rising disposable incomes, urbanisation and changing consumer preferences will continue to drive robust growth in the value-added dairy segment.
With strong farmer relationships, a differentiated product portfolio, expanding distribution network and disciplined execution, Milky Mist is positioning itself to become one of India’s most admired premium dairy companies while creating long-term value for consumers, milk producers and investors alike.
For FY26, the company reported total income of ₹3,145.01 crore, a robust 34% increase over ₹2,354.79 crore recorded in FY25. Profit after tax surged 176% to ₹127.01 crore from ₹46.07 crore, while EBITDA climbed to ₹435.22 crore from ₹310.35 crore during the same period.
In line with SEBI regulations, up to 50% of the net offer has been reserved for Qualified Institutional Buyers (QIBs), at least 35% for Retail Individual Investors (RIIs) and at least 15% for Non-Institutional Investors (NIIs).
JM Financial Limited, Axis Capital Limited and IIFL Capital Services Limited (formerly known as IIFL Securities Limited) are the Book Running Lead Manager’s to the issue.
