Dairy Giant Files with SEBI, Signaling Major Expansion and Debt Repayment Plans.
In a major move for India’s agribusiness sector, Milky Mist Dairy Food Limited has filed a Draft Red Herring Prospectus (DRHP) with SEBI for a substantial Initial Public Offering (IPO) to raise ₹2,035 crore. This significant capital event is structured with a fresh issue of up to ₹1,785 crore and an offer for sale of up to ₹250 crore by its promoter shareholders. The decision to go public underscores the company’s aggressive growth trajectory and its strategy to leverage public markets to fund its ambitious expansion plans.
Milky Mist, a packaged food company founded in Erode, Tamil Nadu, has distinguished itself in the Indian dairy market by focusing exclusively on premium, value-added dairy products rather than selling liquid milk. This strategic focus on higher-margin products has driven remarkable financial growth. The article highlights that the company’s revenue from operations surged from ₹1,394 crore in FY23 to ₹2,349 crore in FY25, with an EBITDA of ₹310 crore in the latest fiscal year. This financial performance showcases the strength of its business model.
The proceeds from the IPO are earmarked for several key strategic initiatives. The largest portion, ₹750 crore, is allocated for repaying outstanding borrowings, which will strengthen the company’s balance sheet. An additional ₹414 crore will be invested in expanding and modernizing its Perundurai Manufacturing Facility, increasing production capacity. A further ₹129 crore is designated for deploying visi coolers and freezers, enhancing the company’s cold chain and retail presence, with the remaining funds going towards general corporate purposes.
The company’s success is also rooted in its commitment to innovation and sustainability. The article notes that Milky Mist has implemented measures to use solar and wind energy in its operations. Furthermore, it continues to innovate by creating health-focused dairy products to meet the evolving demands of India’s growing consumer base. This forward-thinking approach, combining financial growth with responsible practices, positions the company as a leader in modern dairy economics.
For the international dairy community, this IPO is a powerful signal of investor confidence in India’s organized dairy sector. The successful listing of a company specializing in value-added products demonstrates a broader trend of market maturation and diversification. It indicates that capital markets are increasingly willing to support companies that can capture higher margins through strategic product development and efficient operations, making Milky Mist’s journey a key reference point for industry analysts and investors worldwide.
Source: Covai Mail: Milky Mist files DRHP with SEBI for ₹2035 crore IPO
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