- Milky Mist Dairy Food has announced its Initial Public Offering with a price band of Rs 133-140 per share, aiming to raise Rs 1,553 crore for expansion and debt repayment.
- The IPO will open for subscription on August 11 and close on August 13, with bidding for anchor investors starting on August 10.
- The IPO comprises a fresh issue of equity shares aggregating up to Rs 1,428 crore and an Offer For Sale (OFS) of up to Rs 125 crore.
- Milky Mist initially planned to raise Rs 2,035 crore through its IPO before slashing the size to Rs 1,553 crore.
- The company is expected to command a post-issue market valuation of about Rs 10,310 crore to Rs 10,778 crore at the price band.
- The equity shares are proposed to be listed on the BSE and NSE on August 18.
- In April, Temasek unit Jongsong Investments acquired shares at Rs 139.76 per share in a pre-IPO placement.
- In May, Milky Mist raised Rs 482 crore in a pre-IPO funding round from Jongsong Investments.
Milky Mist Dairy Food Ltd has announced a price band of Rs 133-140 per share for its Rs 1,553 crore Initial Public Offering (IPO), which opens for subscription on August 11 and is expected to list on the BSE and NSE on August 18.1246
The IPO, which is set to be the largest by an Indian dairy company, includes a fresh issue of equity shares worth Rs 1,428 crore and an Offer For Sale (OFS) of Rs 125 crore. The company had initially aimed to raise Rs 2,035 crore but downsized the offering after pre-listing stake sales to Temasek's Jongsong Investments, which now holds a 5.2% stake in Milky Mist.3
Proceeds from the IPO will be utilized for debt repayment and the expansion and modernization of its manufacturing facility in Perundurai, Tamil Nadu. This includes setting up new plants for whey protein concentrate, yogurt, and cream cheese, as well as enhancing cold-chain infrastructure.
The IPO follows a challenging year for dairy competitors, with stocks like Hatsun Agro and Dodla Dairy facing declines of 7% and 16.5% respectively due to high milk procurement costs. At the top of the price range, Milky Mist is targeting a market valuation of approximately Rs 10,778 crore, just over half of Hatsun Agro's market value of Rs 202.83 billion.
Anchor investors can bid on August 10, with the public offering running from August 11 to 13.
“The IPO is the largest by an Indian dairy company, with a fresh issue of Rs 1,428 crore and an OFS of Rs 125 crore. Proceeds will repay debt and expand the Perundurai facility, including new whey protein, yogurt, and cream cheese plants.”
