Milky Mist Set to Launch ₹2,035 Crore IPO by July-End; Could Become India's Largest Dairy Sector Public Issue

Milky Mist Dairy Food Ltd, one of India’s top dairy product companies, is set to launch its ₹2,035 crore Initial Public Offering (IPO) as early as July or early August, two people familiar with the development said.

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If launched as expected, the issue is expected to be India's largest IPO in the dairy sector and a watershed for the Tamil Nadu-based company.

Although the company has not set a date for its launch, it appears that investor roadshows have already been completed and preparations for the public issue are in the final stages.

IPO Structure

According to the company's Draft Red Herring Prospectus (DRHP), the IPO will consist of:

1. Fresh issue of equity shares worth up to ₹1,785 crore.
2. Offer for Sale (OFS) worth up to ₹250 crore by the company's promoters and founders.

Besides, Milky Mist can raise to ₹357 crore through a pre-IPO placement. If this placement is done before the public issue, the size of the new issue will be reduced accordingly.

How the Funds Will Be Used

Milky Mist plans to use the proceeds from the new issue for several strategic purposes, such as:

1. Expanding manufacturing capacity.
2. Investing in business growth and infrastructure.
3. Repaying old debt. Supporting future operational requirements.

The company aims to enhance its production capacity to meet growing demand for value-added dairy products across India.

Market Sentiment

The IPO comes at the same time as listed dairy companies have had a tough year in the stock market.

Among the major listed dairy firms:

1. Parag Milk Foods has declined about 20% this year.
2. Dodla Dairy has fallen about 11%.
3. Hatsun Agro Product has slipped about 7.5% since the beginning of the year.

Although dairy stocks have not had much of a high profile (so far), analysts expect investors to closely watch Milky Mist’s situation because Milky Mist has a strong brand, a wide variety of products, and expansion plans.

Leading Investment Banks Managing the Issue

The IPO is being managed by some of India’s leading investment banking firms.

The Book Running Lead Managers (BRLMs) include:

1. JM Financial Ltd.
2. Axis Capital Ltd.
3. IIFL Capital Services Ltd.

These institutions will manage pricing, marketing, and execution of the public offering.

About Milky Mist

Milky Mist Dairy Food Ltd launched itself as one of India’s fastest-growing dairy brands in Tamil Nadu.

The company makes a wide variety of value-added dairy products:

1. Paneer.
2. Cheese.
3. Butter.
4. Ghee.
5. Yogurt.
6. Cream.
7. Milk-based desserts.
8. Other premium dairy products.

Milky Mist has expanded its distribution network all over India and made heavy investments in automated manufacturing facilities over the years, making it one of the country’s most renowned dairy processing companies.

The company is also planning an IPO of ₹2,035 crore in India to drive growth, build up its balance sheet, and penetrate the rapidly growing dairy market in India.

The IPO launch date is based on reports and is subject to market conditions and regulatory approval. Investors must read the final Red Herring Prospectus (RHP) closely before making any investment decisions.