Moo-ving Up! Milky Mist Sheds Fat, Bulks Up With ₹20.35 Billion IPO

Image Source: Moneycontrol

India's market leader in value-added dairy Milky Mist Dairy Food Ltd. has filed preliminary papers with SEBI to raise a record initial public offering (IPO) of ₹20.35 billion to consolidate its market position through expansion and financial consolidation.

Key Highlights IPO Structure:

New issue of equity shares of up to ₹17.85 billion.
Offer-for-sale part of ₹2.5 billion by existing shareholders comprising of majority promoters Sathishkumar T and Anitha S.

Book Running Lead Managers:

JM Financial, Axis Capital, and IIFL Capital Services have been mandated as book-running lead managers for the widely anticipated IPO.

Capital Utilization:

Approximately ₹750 crore will be utilized for debt repayment, and ₹414 crore will be utilized in the expansion and modernization of the company's Perundurai plant—a move that is expected to boost production of products like whey protein concentrate, yogurt, and cream cheese.
Another ₹129 crore will be utilized in installing visi coolers, ice cream freezers, and chocolate coolers to enhance the coverage of distribution.
Unused funds will be retained for business purposes in general, funding long-term business plans.

Business Profile & Financials:

Established in Erode, Tamil Nadu, Milky Mist has carved a niche for itself by focusing on premium value-added dairy products, going around the commoditized liquid milk market to generate higher margins.
The company witnessed the revenue rise to ₹2,349 crore in FY25 from ₹1,394 crore in FY23 and EBITDA margins of 13.2%.
The firm buys directly from more than 67,000 farmers, ensuring constant supply and quality.

Strategic Outlook:

The IPO will be India's biggest in the dairy sector, a demonstration of investor demand for consumer-facing, technology-enabled FMCG brands.
Milky Mist's extensive retail distribution spans 22 states, and exports to 15 countries reflect solid distribution and brand viability.

Source: Reuters, Moneycontrol, Economic Times, Business Standard, TradingView, The Hindu Business Line.