Milky Mist IPO opens for subscription: Brokerages give ‘subscribe’ rating; strong growth, debt reduction in focus – Markets

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Milky Mist IPO

Milky Mist IPO Subscription: The Rs 1,553-crore Milky Mist Dairy Food IPO opened for subscription today, August 11 and it will close on Thursday, August 13.

Milky Mist Dairy Food IPO: The much-anticipated initial public offering (IPO) of packaged food company Milky Mist Dairy Food Ltd opened for bidding today, August 11. As the three-day subscription window opens, the shares of the company are trading with robust premium in the unlisted markets.

Milky Mist IPO Subscription Date

The Rs 1,553-crore Milky Mist Dairy Food IPO opened for subscription today, August 11 and it will close on Thursday, August 13.

Milky Mist IPO Price Band

The price band has been fixed at Rs 133-140 per share.

Milky Mist IPO GMP Today: What grey market premium signals?

The Rs 1,553 crore public issue of Milky Mist has already attracted investor attention, with the company’s shares currently trading at a GMP of Rs 20.5 above the upper price band of Rs 140 per share. This indicates listing gains of 14.64 per cent for the investors. If the momentum continues, the strong GMP could signal healthy listing potential for the stock.

Milky Mist IPO subscribe or not: What brokerages says

Recommending a ‘subscribe’ rating for the public issue, brokerage SBI Securities highlights that Milky Mist Dairy Foods focuses heavily on VADP – a category that yields higher margins compared to the traditional, low-margin liquid milk business where many competitors primarily invest.

Between FY24 and FY26, the brokerage stated the company’s revenue, EBITDA, and profit grew at CAGRs of 31.3%, 40.5%, and 155.6%, respectively. In FY26, the EBITDA margin stood at 13.7%, marking an increase of 70 basis points year-on-year and 180 basis points compared to FY24.

At the upper end of the IPO price band, the company is valued at 84.9 times its post-issue P/E multiple for FY26. The company plans to utilize Rs 497 crore of the IPO proceeds to repay debt, which is expected to reduce future interest expenses. Additionally, improved utilization of production capacity could drive double-digit-plus earnings growth in the future. The brokerage has recommended subscribing to the IPO, it added.

Echoing similar vies, brokerage firm SMIFS has assigned ‘subscribe’ rating for Milky Mist IPO noting that the company has established itself as a strong and prominent player in the value-added dairy products sector. “This standing is underpinned by the company’s strong brand identity, rapid growth, and solid market position. It holds a 19% share of the packaged paneer market and also maintains a strong presence in the cheese, curd, and yogurt segments,” it said.

Among companies with an annual revenue exceeding Rs 1,500 crore, the brokerage said Milky Milk ranks as one of the fastest-growing packaged food companies relative to its peers. With a dedicated focus on value-added dairy products, the company commands better pricing and generates higher returns from milk compared to its competitors. Overall, its business model has evolved to mirror that of FMCG companies, characterized by strength and superior profitability.

Milky Mist IPO: Anchor investors detail

On Monday, it raised Rs 465.30 crore from anchor investors, a day before the opening of its initial public offering (IPO) for public subscription. The company has finalised the allocation of 3.32 crore equity shares to anchor investors at Rs 140 apiece, the upper end of the IPO price band, according to a circular uploaded on the BSE website.

Zulia Investments Pte Ltd received the largest allocation of 1.14 crore shares, accounting for 34.39 per cent of the anchor investor portion. The allocation is worth about Rs 160 crore.

Other major anchor investors included Nippon India Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Public Sector Pension Investment Board-IIFL Asset Management, India Acorn Fund and International Finance Corporation (IFC).

Of the total anchor allocation, 1.54 crore shares, or 46.27 per cent, were allotted to nine domestic mutual funds through 13 schemes.

The issue comprises a fresh share sale of up to Rs 1,428 crore and an offer for sale (OFS) of up to Rs 125 crore. The proposed issue is set to be the largest IPO by an Indian dairy company. Listed peers in the sector include Parag Milk Foods Ltd, Hatsun Agro Product Ltd and Dodla Dairy Ltd.

Earlier, Milky Mist had planned to raise Rs 2,035 crore through its IPO, comprising a fresh issue of Rs 1,785 crore and an OFS of Rs 250 crore.

At the upper end of the price band, the company is expected to command a post-issue market valuation of about Rs 10,778 crore.

The IPO comes after Milky Mist raised about Rs 482 crore in a pre-IPO round in May from Jongsong Investments Pte Ltd, an indirect wholly owned subsidiary of Temasek Holdings. The transaction comprised a primary capital infusion of Rs 357 crore and a secondary share sale of Rs 125 crore.

Milky Mist IPO details
Date of Opening August 11, 2026
Date of Closing August 13, 2026
Price Band Rs 133 – 140
Issue Size (Rs cr) 1,553
Fresh Issue (Rs cr) 1,428
Offer for Sale (Rs cr) 125
Issue Size (No. of shares) 11,09,28,571 @ upper price band
Face Value (Rs) 2
Post Issue Market Cap (Rs cr) 10,778 @ upper price band
BRLMs JM Financial Ltd, Axis Capital Ltd., IIFL Capital Services Ltd.,
Registrar KFin Technologies Pvt Ltd.
Bid Lot 107 shares and in multiple thereof
QIB shares 50%
Retail shares 35%
NII shares 15%
Employee Reservation (Rs cr) 2 2
Employee Discount (Rs) 13

Proceeds from the fresh issue will be used for repayment or prepayment of borrowings, expansion and modernisation of the company’s manufacturing facility at Perundurai in Tamil Nadu, and strengthening its cold-chain infrastructure.

The company plans to deploy funds towards setting up whey protein concentrate, yogurt and cream cheese plants, besides installing visi coolers, ice cream freezers and chocolate coolers. A portion of the proceeds will also be used for general corporate purposes.

Founded in Erode, Tamil Nadu, Milky Mist is focused on value-added dairy products such as paneer, cheese, curd, yogurt, butter, ghee and ice cream, among others. The company does not operate in the liquid milk segment.

Milky Mist IPO Listing date

The equity shares are proposed to be listed on the BSE and NSE on August 18.

Milky Mist IPO book running lead managers and registrar

JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers to the issue, while KFin Technologies is the registrar.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)



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