Dairy product maker Milky Mist Dairy Food Limited has set a price band of Rs 133 to Rs 140 for its downsized initial public offering (IPO) that launches next week in Mumbai, a filing showed on Thursday.
- Tamil Nadu-based Milky Mist slashed its IPO size to 15.53 billion rupees from 20.35 billion rupees on Tuesday after pre-listing stake sales to a unit of Singapore state investor Temasek.
- Temasek unit Jongsong Investments, which now holds a roughly 5.2% stake in Milky Mist, had acquired shares at 139.76 rupees per share in an April pre-IPO placement.
- The company is issuing new shares worth 14.28 billion rupees in the IPO, while its founders are selling shares worth 1.25 billion rupees.
- Milky Mist, whose dairy products include cheese, butter and ice cream, plans to use part of the IPO proceeds to repay debt and expand and upgrade its flagship manufacturing facility in Perundurai, Tamil Nadu.
- Anchor investors will get to bid on August 10, and the offering will be open broadly from August 11 to 13. The stock is expected to list on the BSE and National Stock Exchange on August 18.
- Milky Mist’s rivals have struggled this year amid broader market declines and margin pressures due to high milk procurement costs.
- Hatsun Agro’s stock has fallen 7% so far this year. Dodla Dairy (DODL.NS), opens new tab has dropped 16.5%, Heritage Foods has plunged 27%, Parag Milk Foods has tumbled 22%.
About Milky Mist Dairy Food
Founded in Erode, Tamil Nadu, Milky Mist is among India’s leading premium dairy brands focused exclusively on value-added dairy products. Its portfolio includes paneer, cheese, curd, yoghurt, butter, ghee, ice cream and other dairy-based products. The company does not operate in the liquid milk segment.
JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers to the issue.
