Milky Mist Dairy Food Shares Debut With Nearly 18% Premium

Shares of packaged food company Milky Mist Dairy Food Ltd on Tuesday listed with a premium of nearly 18% against the issue price of ₹140.

The stock started trading at ₹165, up 17.85% from the issue price on both the BSE and NSE.

It further jumped 29.60% to ₹181.45 on the BSE.

The company commanded a market valuation of ₹13,968.81 crore.

The initial public offering (IPO) of Milky Mist Dairy Food Ltd was subscribed 56.12 times on the last day of the share sale on Thursday.

The ₹1,553-crore IPO had a price band of ₹133-140 per share.

The IPO had a fresh issue of shares worth up to ₹1,428 crore and an offer-for-sale (OFS) of up to ₹125 crore.

The mainboard issue is 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.

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, yoghurt and cream cheese plants, besides installing 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, yoghurt, butter, ghee, and ice cream, among others. The company does not operate in the liquid milk segment.