Milky Mist's ₹1,553-Cr IPO Fully Subscribed On Day 2

Dairy products maker Milky Mist Dairy Food saw its ₹1,553-crore initial public offering get fully subscribed on the second day of bidding, Wednesday, with retail and non-institutional investors driving most of the demand. The Temasek-backed company's IPO opened for subscription on August 11.

Data from the NSE showed bids for 9.55 crore shares had come in by 11.15 am against the 8.18 crore shares on offer. Both the retail and Non-Institutional Investor (NII) segments crossed full subscription, while bids for the Qualified Institutional Buyers (QIB) quota stood at 40% of the shares reserved for that category.

In the unofficial grey market, shares of the company were changing hands at around ₹164 each ahead of listing, sites that track such trades showed. That works out to a premium of over 17% above the top end of the IPO price band, up from roughly 16% a day earlier and about 15% before bidding opened. Grey market trading is not regulated, and analysts caution that such premiums do not always match actual listing-day prices.

How the Issue Is Structured

Of the total ₹1,553 crore being raised, ₹1,428 crore will come through a fresh issue of 10.20 crore shares, while the remaining ₹125 crore will be raised via an offer for sale (OFS) of 0.89 crore shares. Promoters Sathishkumar T and Anitha S are offloading stock worth ₹75 crore and ₹50 crore, respectively, as part of the OFS, trimming their stakes in the process. The larger share of the proceeds, however, will flow from the fresh issue.

Before the issue opened to the public, the company had already secured ₹465 crore from anchor investors on August 8, allotting 3.32 crore shares to 19 investors at ₹140 apiece, the top of the price band.

Bidding for the IPO closes on August 13, with allotment expected to be finalised on August 14. Listing on the NSE and BSE is tentatively set for August 18. Shares are priced in a band of ₹133 to ₹140, with a minimum lot size of 107 shares, meaning retail investors need at least ₹14,980 to apply for one lot at the upper end of the range.