Milky Mist IPO: Strong Debut, 18% Premium, Hits Upper Circuit
By ThePip Desk
Milky Mist Dairy Food shares listed at an 18% premium, hitting the upper circuit on BSE. Explore the IPO details and analyst insights on valuations.
Milky Mist Dairy Food shares made a strong market debut, listing at an 18% premium over its IPO price of ₹140. The stock opened at ₹165 on both the NSE and BSE.
It quickly extended gains, hitting the 10% upper circuit at ₹181.45 on the BSE, achieving a market capitalization of ₹12,702.42 crore.
IPO Oversubscription & Size
The ₹1,553 crore IPO was heavily oversubscribed, with significant demand from institutional buyers.
- Overall subscription: 56.12 times
- Qualified Institutional Buyers (QIBs) subscription: 155.83 times
- Fresh issue component: ₹1,428 crore
- Offer-for-Sale component: ₹125 crore
Analyst Caution Amid High Valuations
Analysts acknowledge Milky Mist’s business strengths but advise caution on valuation.
- Shivani Nyati of Swastika Investmart noted strong revenue growth, expanding margins, and leadership in value-added dairy.
- Valuations are high at 85x FY26 earnings, compared to the sector average of 52.5x P/E.
- Recommendation: avoid chasing at current levels, hold with a stop-loss of ₹150, and buy on dips.
Milky Mist’s Strategic Growth Plans
Founded in Erode, Tamil Nadu, Milky Mist focuses on value-added dairy products like paneer, cheese, curd, and ice cream.
IPO proceeds are earmarked for several strategic initiatives:
- Debt repayment
- Facility expansion
- Cold-chain infrastructure development
- Setting up new plants for whey protein, yogurt, and cream cheese