India’s Milky Mist Dairy Food receives regulatory approval for a massive Initial Public Offering aimed at reducing debt, financing a major facility expansion, and improving market liquidity.
Milky Mist Dairy Food Limited, recognized as one of India’s foremost dairy product manufacturers, has secured the green signal from the market regulator SEBI to launch a substantial Initial Public Offering (IPO). The company plans to raise approximately ₹2,035 crores through the book-built issue, a major step for a company notably built without prior private equity support. This IPO is structured to include a substantial fresh issue of ₹1,785 crores and an Offer-for-Sale (OFS) of up to ₹250 crores equity shares from the promoters, Sathishkumar T and Anitha S.
The primary objectives for raising this capital are highly strategic, focused on fortifying the company’s financial health and expanding its operational footprint. A significant portion of the fresh issue, ₹750 crores, is earmarked for repaying or prepaying the company’s outstanding debt. The company’s remaining loan amount stood at ₹1,463.59 crore as of May 31, 2025. Additionally, ₹414.7 crores will be utilized to finance the expansion and upgrade of its key Perundurai manufacturing facility, ensuring future capacity growth.
Milky Mist boasts a diverse portfolio spanning a wide range of dairy and food products, including essential items like cheese, paneer, butter, curd, ghee, and yogurt, alongside high-growth categories such as ice cream, frozen foods, ready-to-eat/cook products, and chocolates. To support the distribution of its rapidly expanding product line, ₹129.4 crores from the IPO proceeds are specifically designated for the deployment of visi coolers, ice cream freezers, and chocolate coolers, enhancing its retail presence.
Financially, the company has demonstrated strong growth leading up to the IPO approval. For the fiscal year ending FY25, Milky Mist generated a revenue of ₹2,349.5 crore, achieving a Profit After Tax (PAT) of ₹46 crore. This performance positions the company among significant competitors in the region, including Britannia Industries, Dodla Dairy, Hatsun Agro, Nestle India, and Parag Milk Foods. The IPO is set to list on both the NSE and BSE exchanges, with the retail quota fixed at 35%, the QIB quota at 50%, and the HNI quota at 15%.
The strategic outcome of this listing is multi-faceted, aiming to not only reduce debt and improve liquidity but also to fund future expansion as Milky Mist plans to grow beyond its current stronghold in South India. The company may also execute a pre-IPO round to raise ₹357 crore, in which case that amount would be deducted from the fresh issue component. The successful launch will provide the financial muscle necessary for the dairy giant to cement its position and pursue ambitious future growth across the national market.
Source: Find the complete IPO prospectus details and analysis at IPO Watch.
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