The initial public offering (IPO) for Milky Mist Dairy Food, a prominent packaged-food company, commenced its subscription period on Tuesday, August 11. The Erode-based firm is offering its shares within a price band of Rs 133 to Rs 140 per equity share, with a minimum lot size of 107 shares. The public issue is set to close for subscription on Thursday, August 13, aiming to raise a total of Rs 1,553 crore.
IPO Details and Fund Utilization
The Rs 1,553 crore IPO comprises a fresh issue of shares worth Rs 1,428 crore and an offer-for-sale (OFS) of up to 89,28,570 equity shares, valued at Rs 125 crore. The net proceeds from the fresh issue are earmarked for several key objectives: repayment of existing debt, financing capital expenditure for the modernization of its Perundurai facility, deployment of visi coolers and ice-cream freezers, and general corporate purposes.
Company Profile and Financial Performance
Incorporated in July 2014, Milky Mist Dairy Food has rapidly grown into one of India's leading packaged food companies, specializing in premium value-added dairy products. Its diverse portfolio includes cheese, paneer, butter, curd, ghee, yogurt, ice cream, UHT products, frozen foods, ready-to-eat/cook items, and chocolates sold under various brands.
Ahead of the IPO, Milky Mist successfully raised Rs 465.3 crore from 19 anchor investors, allocating 3,32,35,713 equity shares at Rs 140 each. Notable anchor investors included Zulia Investments, Nippon Life India, HDFC Trustee Company, ICICI Prudential MF, and International Finance Corporation.
For the fiscal year ending March 31, 2025, Milky Mist reported a net profit of Rs 127.01 crore on revenues of Rs 3,145.01 crore. In the preceding fiscal year (FY24), the company posted a net profit of Rs 46.07 crore with revenues of Rs 2,354.79 crore. The company commands a total market capitalization exceeding Rs 10,775 crore at current valuations.
Subscription Allocation and Listing
The IPO allocation reserves 50 percent of the net issue for qualified institutional bidders (QIBs), 15 percent for non-institutional investors (NIIs), and 35 percent for retail investors. The grey market premium (GMP) for Milky Mist shares was last heard in the range of Rs 20-22 apiece, indicating a potential listing gain of 14-16 percent for investors.
JM Financial Ltd, Axis Capital, and IIFL Capital Services are acting as the book-running lead managers for the IPO, with Kfin Technologies Ltd serving as the registrar. Shares of Milky Mist Dairy Food are expected to list on both the BSE and NSE on Tuesday, August 18.
Brokerage Reviews and Recommendations
Several brokerage firms have issued their views on the Milky Mist Dairy Food IPO:
SBI Securities: Subscribe
SBI Securities highlighted Milky Mist's focus on high-margin value-added dairy products (VADP) compared to peers in the traditional liquid milk business. The firm noted a CAGR of 31.3 percent in revenue, 40.5 percent in EBITDA, and 155.6 percent in PAT during FY24-FY26, with an improving EBITDA margin. Factoring in debt repayment from IPO proceeds and increased capacity utilization, SBI Securities assigned a 'subscribe' rating, anticipating high double-digit earnings growth.
Swastika Investmart: Neutral
Swastika Investmart acknowledged Milky Mist's strong revenue CAGR of 33.6 percent, expanding margins, and a 32 percent RoE, driven by its leadership in the value-added dairy segment. While the IPO is valued at 85 times FY26 post-IPO earnings—a premium to the sector average—the firm believes this is justified by FMCG-like margins and a pure-play VADP business model. They suggested aggressive investors could apply, but a more favorable entry point might emerge post-listing as leverage declines.
Anand Rathi Shares & Stock Brokers: Subscribe for Long-Term
Anand Rathi recognized Milky Mist's strong revenue growth, leadership in key value-added dairy categories, and premium positioning, which could command a valuation premium. However, perceiving the IPO valuation as fully priced at the upper band, they recommended a 'subscribe for long term' rating.
SMIFS: Subscribe
SMIFS emphasized Milky Mist's planned capacity expansion, deployment of 66,000 additional branded cooling assets, and significant headroom for geographic expansion. These factors, combined with a differentiated business model, integrated operations, and strong execution capabilities, position the company to capitalize on the large addressable market. SMIFS gave a 'subscribe for long-term' rating.
BP Equities: Subscribe
BP Equities noted Milky Mist's valuation at a P/E of around 71.1 times based on FY26 earnings. Considering its leadership in the nutrition segment, integrated business model, strong brand portfolio, improving financial profile, and favorable industry outlook, they recommended a 'subscribe' for long-term growth.
Sushil Finance: Strong Subscribe
Sushil Finance rated Milky Mist Dairy Food as a 'strong subscribe,' citing its robust growth and profitability trajectories. They highlighted the balanced allocation of IPO proceeds—one-third to debt repayment, one-third to capacity expansion, and a significant portion to cold-chain/retail infrastructure—which supports continued distribution-led growth rather than being a pure promoter-exit vehicle.
Ventura Securities: Subscribe
Ventura Securities described Milky Mist as a Tamil Nadu-based value-added dairy company with a wide product portfolio and a strong distribution network. They noted the company's revenue growth of 33.6 percent in FY26 and a nearly tripled PAT to Rs 127 crore. While acknowledging its leading positions in packaged paneer, cheese, and yogurt, Ventura advised investors to monitor its relatively high leverage, giving a 'subscribe' tag.
Ajcon Global Services: Subscribe
Ajcon Global Services assigned a 'subscribe' rating, pointing to Milky Mist's strong market positions, including a 19 percent share in organized packaged paneer, 12 percent in South India's organized cheese market, and approximately 13 percent in organized yogurt, providing a solid foundation for future growth.
Equivision: Subscribe
Equivision underscored Milky Mist's automated Perundurai manufacturing facility, integrated supply chain, and diversified distribution network across 22 states and 5 Union Territories as strengths supporting scalability and operational efficiency. While trading at a premium reflecting strong growth, they emphasized that continued revenue growth, better margins, and successful execution would be crucial to justify the valuation.