Milky Mist Dairy Food’s ₹1,553-crore IPO opens for subscription today at ₹133-140 per share. The issue includes a ₹1,428-crore fresh issue and ₹125-crore offer-for-sale.
The public issue of Milky Mist Dairy Food Limited opens today for subscription at a price band of ₹ 133- 140. The ₹1,553-crore issue closes on Thursday. Investors can bid for a minimum lot of 107 equity shares and in multiples thereof. The offer follows the book-building process with up to 50 per cent reserved for qualified institutional buyers, not less than 15 per cent for non-institutional bidders, and not less than 35 per cent for retail individual bidders. Up to 60 per cent of the QIB portion may be allocated to anchor investors on a discretionary basis.Fresh issue, offer-for-sale detailsThe IPO of Tamil Nadu-based dairy major comprises a fresh issue of up to ₹1,428 crore and an offer-for-sale of up to ₹ 1,250 crore. The offer for sale includes shares worth ₹75 crore by Sathishkumar T and ₹50 crore by Anitha S.Eligible employees bidding under the employee reservation portion will receive a discount of ₹13 per share.Milky Mist raises ₹465 crore from anchor investorsMeanwhile, Milky Mist Dairy Food has raised about ₹465 crore ahead of IPO from marquee anchor investors by allotting about 3.32 crore equity shares at ₹140 a share.Of the total allocation, about 1.54 crore equity shares were allocated to 9 domestic mutual funds through 13 schemes. The anchor book saw participation from Zulia Investments PTE (a subsidiary of Temasek) and the International Finance Corporation. Other participants include Nippon MF, HDFC MF, ICICI Pru MF, 360 One, White Oak, Invesco MF, Motilal Oswal MF, Edelweiss MF, HSBC MF, Trust MF, and Union Small Cap Fund.IPO proceeds to fund debt repayment, expansionOf the fresh proceeds, ₹496.86 crore is earmarked for debt repayment, ₹469.24 crore for expanding and modernising the Perundurai (Erode district in TN) facility, and ₹155.31 crore for deploying visi-coolers, ice-cream freezers and chocolate coolers, with the balance for general corporate purposes.Ahead of the IPO, the company completed a pre-IPO placement aggregating ₹357 crore, comprising 543,789 equity shares and 25,000,000 compulsorily convertible preference shares, both priced at ₹139.76 per share.The equity shares are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited, with NSE designated as the primary stock exchange.JM Financial Limited, Axis Capital Limited, and IIFL Capital Services Limited are the book-running lead managers for the issue.Brokerages views:SBI Securities: Milky Mist Dairy Foods focuses primarily on VADP, a higher-margin product compared to its peers, which are heavily invested in traditional, low-margin liquid milk businesses. The company delivered CAGRs of 31.3%/40.5%/155.6% in Revenue/EBITDA/PAT during the FY24-FY26 period, with a FY26 EBITDA margin of 13.7%, up 70 bps YoY and 180 bps since FY24. The IPO is valued at a post-issue FY26 PE multiple of 84.9x at the upper end of the price band. The company plans to repay ₹497 cr in debt using IPO proceeds, which is expected to reduce interest costs going forward. This, along with the increase in capacity utilisation, is expected to deliver high double-digit earnings growth in the near term. We recommend investors SUBSCRIBE to the issue.Anand Rathi: Milky Mist is valued at an implied P/E of 84.9x based on FY26 earnings at the upper price band. While its strong revenue growth, leadership in key value-added dairy categories, and premium positioning could justify a valuation premium, the brokerage said the IPO appears fully priced at the upper end of the range. It has therefore assigned a “Subscribe - Long Term” rating to the issue.Published on August 11, 2026
