Milky Mist IPO Ends With 42.29x Subscription; GMP Signals 16% Listing Premium

The ₹1,553-crore initial public offering (IPO) of Milky Mist Dairy Food received a robust response from investors on the final day of bidding, with the issue subscribed 42.29 times as of 3:12 pm on Thursday.

Institutional investors led the subscription, with the qualified institutional buyers (QIB) portion booked 112.28 times. The non-institutional investor (NII) category was subscribed 31.57 times, while the retail portion was booked 7.01 times. The employee quota received 10.74 times subscription.

The IPO, which has a price band of ₹133-140 per share, comprises a fresh issue worth ₹1,428 crore and an offer for sale (OFS) of ₹125 crore.

Milky Mist had raised ₹465.3 crore from anchor investors ahead of the public issue.

Largest Dairy IPO In India

The public issue is the largest IPO by an Indian dairy company. Listed peers include Parag Milk Foods, Hatsun Agro Product and Dodla Dairy.

At the upper end of the price band, the company is expected to command a post-issue market capitalisation of around ₹10,778 crore.

Earlier this year, Milky Mist raised about ₹482 crore in a pre-IPO funding round from Jongsong Investments, an indirect wholly owned subsidiary of Temasek Holdings. The transaction included a ₹357 crore primary infusion and a ₹125 crore secondary share sale.

IPO Proceeds And Listing

The company plans to utilise the proceeds from the fresh issue to repay borrowings, expand and modernise its manufacturing facility at Perundurai, Tamil Nadu, and strengthen its cold-chain infrastructure.

The capital expenditure includes setting up whey protein concentrate, yoghurt and cream cheese plants, along with deploying ice cream freezers and chocolate coolers. A portion of the proceeds will also be used for general corporate purposes.

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

The shares are scheduled to list on the BSE and NSE on August 18.

GMP Signals Strong Listing

The IPO continued to command a healthy premium in the unofficial market. According to market trackers, the grey market premium (GMP) stood at around ₹22, implying a 16% premium over the upper price band of ₹140.

While GMP reflects prevailing market sentiment, it is an unofficial indicator and does not guarantee listing gains.

Brokerage View

According to Master Capital Services, India's dairy market is expected to maintain strong growth, driven by increasing demand for value-added dairy products, rising incomes and changing consumer preferences.

The brokerage believes Milky Mist is well positioned to benefit from this trend due to its established brand, diversified product portfolio, technology-driven manufacturing, direct milk procurement network and integrated logistics infrastructure. It added that the company could continue gaining market share in southern India while pursuing inorganic expansion, making the IPO a potential long-term investment opportunity.