Milky Mist IPO Listing: Shares Jump 30% From Issue Price, Hit Upper Circuit

Temasek-backed Milky Mist Dairy Food made a strong debut on the stock exchanges on Tuesday, with its shares listing at a premium of nearly 18% over the IPO issue price before surging further to hit the upper circuit.

Milky Mist shares opened at ₹165 on the BSE, representing a gain of ₹25, or 17.86%, over the issue price of ₹140. The stock also debuted at ₹165 on the NSE.

Following the listing, the shares rallied to hit the upper circuit at ₹181.50 on the NSE and ₹181.45 on the BSE.

The debut was stronger than indicated by grey-market trends. The latest grey market premium (GMP) for the Milky Mist IPO stood at ₹19.70, implying an estimated listing price of around ₹159.70, or a 14.07% premium over the issue price.

At the actual listing price of ₹165, investors who received shares in the IPO gained ₹25 per share.

Strong Subscription And Investor Interest

The strong debut came after robust investor demand during the three-day bidding period.

The ₹1,553 crore Milky Mist IPO was subscribed 59.08 times by the time bidding closed on August 13. The qualified institutional buyers (QIB) portion was subscribed 164.03 times, while the non-institutional investor (NII) category received 36.75 times subscription. The retail portion was subscribed 8.86 times.

The IPO had a price band of ₹135-140 per share, with the final issue price fixed at the upper end of the band at ₹140.

The IPO comprised a fresh issue of 10.20 crore shares worth ₹1,428 crore and an offer for sale of 0.89 crore shares worth ₹125 crore.

The issue opened for subscription on August 11 and closed on August 13. The allotment was finalised on August 14, ahead of the listing on August 18.

JM Financial was the book-running lead manager, while KFin Technologies acted as the registrar.

How Much Investors Gained

At the BSE listing price of ₹165, an investor allotted one lot of 107 shares would see the value of the investment rise to ₹17,655, compared with the issue cost of ₹14,980.

This translates into a notional listing gain of ₹2,675 per lot.

However, the stock's subsequent rise to the upper circuit has pushed the value of one lot further higher.

Shivani Nyati, Head of Wealth at Swastika Investmart, said Milky Mist's strong debut was supported by its revenue growth, expanding margins and leadership in the value-added dairy segment.

Nyati noted that Temasek-backed Jongsong Investments had invested ₹482 crore in the pre-IPO round at ₹139.76 per share for a roughly 5.2% stake, providing additional validation to the company's growth prospects and IPO valuation.

However, she cautioned that the stock was trading at around 85 times FY26 earnings, significantly above the dairy sector average of around 52.5 times P/E.

While the premium is supported by Milky Mist's FMCG-like margins and value-added product mix, Nyati expects the strong listing could lead to some profit booking. She maintained a positive view on the business but advised investors against chasing the stock at current levels, recommending a hold with a stop-loss of ₹150 and adding on meaningful dips.