Milky Mist Dairy Food Ltd. has received anchor investors on August 10 to raise ₹465.29 crore on its ₹1,553 crore IPO; the institutional investor base is very enthusiastic about the dairy company's public market debut. The anchor bidding for its IPO started on August 10, one day before the IPO was opened for subscription on August 11. The company sold shares at ₹140 each, which is the upper end of the IPO price band.
Among the 19 institutional investors that participated in the anchor book were Zulia Investments Pte Ltd, a subsidiary of Temasek, as well as the International Finance Corporation (IFC) and a few of the top domestic mutual funds. Nine domestic mutual funds, through 13 schemes, were allocated nearly 1.57 crore shares, showing the huge participation of institutional investors.
Zulia Investments was the largest anchor investor, with 1.14 crore shares for about ₹160 crore. Other participants included Nippon India Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Invesco Mutual Fund, Motilal Oswal Mutual Fund, Edelweiss Mutual Fund, HSBC Mutual Fund and Union Small Cap Fund. The strong anchor participation comes after Milky Mist raised around ₹482 crore in a pre-IPO transaction earlier this year with a Temasek-linked investor.
The Milky Mist IPO is priced at between ₹133 and ₹140 per share and the firm is issuing a fresh issue of up to ₹1,428 crore and an offer for sale up to ₹125 crore. The public issue is open from August 11 to August 13 and the shares will be listed on BSE and NSE on August 18. At the top end of the price band the company will have a post-issue valuation of around ₹10,778 crore.
Milky Mist intends to use the new issue proceeds for debt repayment, expansion and modernisation of its manufacturing facility in Perundurai in Tamil Nadu and strengthening its cold-chain infrastructure. The company makes value-added dairy products including paneer, cheese, yoghurt, curd, butter, ghee and ice cream. The successful anchor fundraising could be an early indicator of institutional confidence as investors now turn their attention to the public subscription phase of the IPO.
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