Milky Mist IPO Surges 30% on Debut, Hits Rs 181.50

Milky Mist Dairy Food shares closed 30% higher on their debut day, settling at Rs 181.50 on the NSE. This marked a significant jump from its issue price of Rs 140, capping a strong entry for the Erode-based dairy company.

The company’s market valuation reached approximately Rs 13,968.81 crore by the end of its first trading session. Shares initially listed at Rs 165, a 17.86% premium over the IPO price.

IPO Performance Snapshot

• Closing Price: Rs 181.50
• Debut Day Gain: 30%
• Market Valuation: Rs 13,968.81 crore
• IPO Issue Price: Rs 140
• Listing Price: Rs 165 (17.86% premium)

Investor interest for the Tamil Nadu firm was robust, with its initial public offering (IPO) oversubscribed 56.12 times on its final day. The IPO was valued at Rs 1,553 crore.

Analyst Insights & Valuations

Shivani Nyati, Head of Wealth at Swastika Investmart, pointed to several factors supporting the premium valuation. These include a 33.6% revenue CAGR, expanding margins, and a 32% Return on Equity (RoE).

Temasek-backed Jongsong Investments also validated growth prospects with a Rs 482 crore pre-IPO investment for a 5.2% stake. However, Nyati noted the valuations at around 85x FY26 earnings are significantly higher than the dairy sector’s average of 52.5x P/E.

Nyati advised investors to avoid chasing the stock at current levels, suggesting a hold with a stop-loss of ₹150. Additions could be considered on meaningful dips, according to the analyst.

IPO Structure & Future Plans

The Rs 1,553 crore IPO featured a price band of Rs 133-140 per share. It comprised a fresh issue of shares worth up to Rs 1,428 crore and an offer-for-sale (OFS) of up to Rs 125 crore.

Proceeds from the fresh issue are earmarked for repaying borrowings, expanding and modernizing its manufacturing facility in Perundurai, Tamil Nadu, and enhancing cold-chain infrastructure. Milky Mist focuses on value-added dairy products, not liquid milk.