Indian VADP Powerhouse secures SEBI approval, earmarking fresh issue proceeds for debt reduction and aggressive CapEx expansion.
The Indian dairy investment landscape is witnessing a significant capitalization event as Milky Mist Dairy Food Private Ltd. secures approval from SEBI for its proposed Initial Public Offering (IPO). This move is a powerful signal of the financial maturation and scaling ambition within the subcontinent’s high-growth dairy sector. The offering is substantial, valued at up to ₹2,000 crore, positioning Milky Mist to transition from a private entity to a publicly traded enterprise capable of accessing broader capital markets for sustained growth.
The IPO structure is bifurcated into two key components, demonstrating a balanced approach to both company funding and shareholder liquidity. It includes a Fresh Issue of equity shares worth ₹1,000 crore, the proceeds of which will flow directly to the company. Simultaneously, an Offer For Sale (OFS) component, also valued at up to ₹1,000 crore, provides existing promoters and shareholders with an exit mechanism, balancing future investment with early stakeholder returns.
Crucially, the capital raised from the ₹1,000 crore fresh issue has two distinct and vital corporate uses. The primary objectives are earmarked for repayment or prepayment of borrowings/debt and for financing capital expenditure (CapEx) related to future expansion initiatives. For analysts, this signals that the IPO is both a balance sheet management exercise and a strategic funding mechanism to sustain aggressive growth in the competitive Value-Added Dairy Products (VADP) segment.
Financially, Milky Mist presents a high-growth, high-volume profile, evidenced by its latest disclosed numbers. Revenue from operations soared to ₹2,876 crore for the fiscal year ending March 2024 (FY24), marking a strong jump from ₹2,357 crore in the preceding year (FY23). While top-line growth is robust, net profitability metrics show a slight compression, moving from ₹55 crore in FY23 down to ₹51 crore in FY24, a point of focus for investors considering market dynamics and input cost pressures.
The company’s credibility and the financial confidence in its VADP-focused strategy are affirmed by the appointment of elite investment banking institutions to manage the offering. BofA Securities India, J P Morgan India, and JM Financial have been mandated as the Book Running Lead Managers (BRLMs). Their involvement lends significant international exposure and validation to Milky Mist’s valuation and its central role in driving the rapid modernization and premiumization of the Indian dairy industry.
Source: Moneycontrol News: Milky Mist gets SEBI nod for Rs 2,000 crore IPO to use proceeds for debt repayment, expansion
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇮🇳 eDairy News ÍNDIA: https://whatsapp.com/channel/0029VaPidCcGpLHImBQk6x1F
