The upcoming IPO is structured entirely as a fresh issue of equity shares, meaning the entirety of the capital raised will flow directly into the company, without any Offer for Sale (OFS) component from existing shareholders. The total size of the offering is substantial, valued at ₹750 crore (approximately $90 million USD). For analysts, this structure indicates a primary focus on growth and capital deployment for future operations, providing the necessary financial firepower to execute its next phase of growth in the highly competitive market.

A primary allocation for the IPO proceeds is dedicated to funding crucial capital expenditure (Capex). This strategic investment is aimed at expanding and modernizing Milky Mist’s existing manufacturing facilities, which is essential for scaling up production capacity to meet escalating domestic and potentially international demand for its diverse product portfolio. This commitment to infrastructure expansion is a key indicator of the company’s forward-looking strategy focused on achieving significant scale and maximizing efficiency in its operations.

Beyond long-term infrastructure, the remaining fresh capital will be dedicated to meeting essential working capital requirements and funding general corporate purposes. Securing sufficient working capital is vital for a business that handles perishable goods, as it ensures smooth day-to-day operations, efficient procurement of raw materials (milk), and robust inventory management. This balanced funding approach provides both immediate stability for current operations and essential support for strategic growth initiatives.