Retail investors can bid for a minimum of one lot comprising 107 equity shares and in multiples thereafter. At the upper end of the price band, the minimum investment works out to ₹14,980.
At the upper end of the price band, the IPO values the company at around ₹10,778 crore, a little over half the market capitalisation of listed peer Hatsun Agro Product.
The Tamil Nadu-based dairy products maker has reduced its IPO size to ₹1,553 crore from the earlier planned ₹2,035 crore following a pre-IPO stake sale to Jongsong Investments, a subsidiary of Singapore state investor Temasek.
The IPO comprises a fresh issue of shares worth ₹1,428.2 crore and an offer for sale (OFS) of ₹125 crore by existing shareholders.
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About 50% of the issue has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.
Temasek’s Jongsong Investments currently owns around 5.2% of Milky Mist after acquiring shares at ₹139.76 apiece through a pre-IPO placement in April.
The company, which manufactures dairy products including cheese, butter and ice cream, plans to utilise the IPO proceeds to repay debt and expand and modernise its flagship manufacturing facility at Perundurai in Tamil Nadu.
Milky Mist’s listed peers have faced margin pressure this year amid elevated milk procurement costs and broader market weakness.
Axis Capital, JM Financial and IIFL Capital Services are the book-running lead managers to the issue.
The company’s shares are expected to be listed on the BSE and NSE on August 18.
