Milky Mist IPO: Milky Mist Dairy Food Ltd. is preparing to launch a 20.35 billion rupees ($213 million) initial public offering as soon as July, according to sources familiar with the matter, setting the stage for what is projected to be the biggest dairy-sector IPO in India’s history, reported Bloomberg News.
The Tamil Nadu-based company has concluded its investor roadshows and aims to launch the share sale by the end of July or early August, the people said, who requested anonymity as the details have not been made public.
A spokesperson for Milky Mist, however, decline to comment regarding the time of the IPO launch.
The planned public debut arrives during a period where domestic dairy stocks have underperformed compared to the wider market.
So far this year, Parag Milk Foods Ltd. has dropped 20 per cent, Dodla Dairy Ltd. has shed roughly 11 per cent, and Hatsun Agro Product Ltd. has slipped by 7.5 per cent.
The proposed public offering will consist of a fresh issuance of shares valued at up to 17.85 billion rupees, and an offer for sale of up to 2.5 billion rupees from the company’s founders, the company’s draft prospectus indicates.
Additionally, the regulatory filing showed that Milky Mist could raise up to 3.57 billion rupees through a pre-IPO placement, an action that would subsequently reduce the size of the fresh share issue.
Milky Mist plans to allocate the proceeds raised from the IPO toward scaling up its production capacities and clearing outstanding debt, according to the filing.
JM Financial Ltd., Axis Capital Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the offering.
