Milky Mist set to launch US$213M initial public offering

INDIA – Milky Mist Dairy has announced its preparation to launch a US$213.3 million (₹2,035 crore) initial public offering (IPO), a move that could mark the largest-ever public issue by an Indian dairy company.

According to people familiar with the matter, the company has successfully completed investor roadshows and is entering the final stages before opening the issue.

While Milky Mist has not officially confirmed the timeline, market participants expect the IPO to attract significant interest given the company’s strong presence in India’s value-added dairy products segment.

The proposed IPO consists of a fresh issue of equity shares worth up to US$186.6 million (₹1,785 crore), along with an offer for sale (OFS) of up to US$26.1 million (₹250 crore) by the company’s promoters, as detailed in the draft red herring prospectus (DRHP).

In addition, Milky Mist may raise up to US$37.3 million (₹357 crore) through a pre-IPO placement, which, if completed, would proportionately reduce the size of the fresh issue.

The company intends to utilise the proceeds from the fresh issue primarily to expand its manufacturing infrastructure and strengthen its balance sheet through debt repayment.

The planned investment reflects Milky Mist’s continued focus on scaling production capacity to meet rising demand for premium and value-added dairy products across India.

The IPO comes at a significant time for the Indian dairy industry, where consumer demand for cheese, yoghurt, paneer and other processed dairy products continues to grow.

Capacity expansion is increasingly becoming a strategic priority for organised dairy companies seeking to strengthen their market position.

Milky Mist’s public issue is being launched against a backdrop of subdued investor sentiment towards listed dairy companies. Several dairy stocks have underperformed the broader equity markets this year.

Parag Milk Foods Ltd. has declined around 20% since the beginning of the year, while Dodla Dairy Ltd. has fallen approximately 11%. Hatsun Agro Product Ltd. has also recorded a decline of about 7.5% during the same period.

Despite these market headwinds, analysts continue to view India’s organised dairy sector as a long-term growth opportunity, supported by increasing consumption of branded dairy products, expanding cold chain infrastructure and rising disposable incomes.

The IPO is being managed by JM Financial Ltd., Axis Capital Ltd. and IIFL Capital Services Ltd., which are acting as the book-running lead managers for the proposed offering.

If successfully launched, the Milky Mist IPO is expected to become a landmark transaction for the Indian dairy industry, highlighting growing investor interest in organised dairy businesses and reinforcing confidence in India’s expanding dairy processing sector.

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