Milky Mist IPO Subscribes 79% on Day 1: India’s Largest Dairy

Milky Mist Dairy Food’s initial public offering secured a 79% subscription on its first day. This Rs 1,553-crore IPO is India’s largest dairy offering to date, closing on August 13.

Key subscription figures from day one:

• Overall subscription: 79%
• Retail investors: 96% subscribed
• Non-institutional investors: 92% subscribed
• Qualified Institutional Buyers (QIBs) portion: 39% subscribed

Milky Mist Dairy Food Ltd had previously raised Rs 465.30 crore from anchor investors. The price band for the IPO is fixed at Rs 133-140 per share.

Issue Structure and Listing

The IPO is structured with a fresh issue of up to Rs 1,428 crore and an Offer-for-Sale (OFS) of up to Rs 125 crore. Equity shares are proposed to be listed on the BSE and NSE on August 18.

Strategic Use of Fresh Issue Proceeds

Funds from the fresh issue are earmarked for several strategic initiatives:

• Repayment or prepayment of company borrowings.
• Expansion and modernisation of the manufacturing facility at Perundurai in Tamil Nadu.
• Strengthening cold-chain infrastructure.
• Setting up new plants for whey protein concentrate, yogurt, and cream cheese.
• Installing ice cream freezers and chocolate coolers.
• General corporate purposes.

Founded in Erode, Tamil Nadu, Milky Mist specializes in value-added dairy products like paneer, cheese, curd, yogurt, butter, ghee, and ice cream. The company exclusively focuses on these products, not operating in the liquid milk segment.