NE BUSINESS BUREAU
CHENNAI, AUG 12
A creamy beginning to a market debut! Milky Mist Dairy Food Limited’s ₹1,553-crore initial public offering (IPO) whipped up strong investor appetite on second day, with the issue receiving bids for 17,77,82,747 equity shares against 8,17,98,244 shares on offer, translating into an overall subscription of 2.17 times, according to stock exchange data at 17:00 IST on Wednesday.
- ₹1,553-crore public issue draws 17.78 crore bids against 8.18 crore shares on offer
- Retail and NII portions oversubscribed; QIB book at 40% on opening day
- Milky Mist raises ₹465 crore from 19 anchor investors at ₹140 a share
- Fresh issue to fund debt repayment, Perundurai expansion and manufacturing upgrades
The response came with the retail and Non-Institutional Investor (NII) categories being oversubscribed, while the Qualified Institutional Buyers (QIB) portion had garnered subscription of 40% by the close of Day One.
From Perundurai to Dalal Street
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 shares worth ₹125 crore.
Under the OFS, promoter shareholders Sathishkumar T. and Anitha S. are selling shares worth ₹75 crore and ₹50 crore, respectively, giving the promoters an opportunity to partially pare their holdings, while the bulk of the capital being raised through the IPO will flow into the company through the fresh issue.
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Milky Mist milks anchor book: ₹465-cr pre-IPO splash draws Temasek arm, IFC & top MF giants
A day before the IPO opened, Milky Mist had already secured a strong institutional endorsement by raising ₹465 crore from 19 anchor investors, through allotment of 3.32 crore equity shares at the upper price band of ₹140 apiece.
The IPO will remain open until August 13, with the basis of allotment expected on August 14. The shares are scheduled to list on the NSE and BSE on August 18, subject to the final timetable.
₹140 cap, ₹133 floor — and a 107-share spoonful
The price band has been fixed at ₹133 to ₹140 per equity share, with each share having a face value of ₹2. The floor price is 66.50 times the face value, while the cap price is 70 times the face value.
Investors can bid for a minimum of 107 equity shares and in multiples of 107 thereafter. At the upper end of the price band, a retail investor will require a minimum investment of ₹14,980 for one lot.
Eligible employees bidding in the Employee Reservation Portion will receive a discount of ₹13 per equity share.
From farm to fork — Milky Mist’s value-added bet
Milky Mist has built its business around an integrated farm-to-retail model, sourcing milk directly from farmers and processing it at its integrated manufacturing facility at Perundurai in Erode, Tamil Nadu.
Its portfolio extends well beyond conventional dairy, spanning cheese, paneer, butter, curd, ghee, yogurt, Greek yogurt, ice cream, UHT products, frozen foods, ready-to-eat products and protein-enhanced cottage cheese.
The company’s strategy increasingly centres on value-added dairy products, giving it a business profile closer to an FMCG platform than a traditional milk company.
Its strong South Indian footprint remains a key pillar, with South India contributing 69.23% of FY26 revenue.
The company plans to deploy part of the IPO proceeds towards debt repayment and expansion/upgradation of its flagship Perundurai manufacturing facility. It also intends to strengthen milk procurement and distribution capabilities and pursue strategic acquisitions to enter new markets, geographies and product categories.
With established positions in packaged paneer, cheese, curd and yogurt, Milky Mist is seeking to turn rising consumer preference for premium and value-added dairy into its next phase of growth.
