Milky Mist Dairy Foods Ltd. opened its initial public offering for subscription on Tuesday, seeking to raise ₹1,553 crore [1].
The listing marks a significant expansion for the dairy company as it seeks public capital to scale operations and optimize its balance sheet.
The company fixed the price band for the offering at ₹133 to ₹140 per share [2]. At the upper end of this band, the company's valuation is approximately ₹10,778 crore [7]. The issue consists of a fresh issuance of 10.20 crore shares worth ₹1,428 crore [3], alongside an offer for sale of 0.89 crore shares valued at ₹125 crore [4].
Retail investors can apply for a minimum lot size of 107 shares [8]. The company's valuation reflects a post-issue FY26 PE multiple of 84.9× when calculated at the upper price band [5].
Milky Mist intends to use a portion of the proceeds to strengthen its financial position. Specifically, the company earmarked ₹497 crore for the repayment of debt [6]. The remaining funds are designated for capital expenditure, and various growth initiatives to expand its market presence in India.
The offering comes with the backing of Temasek, indicating strong institutional interest in the company's growth trajectory. By transitioning to a public entity, Milky Mist aims to leverage the equity markets to fund the high costs associated with dairy infrastructure and supply chain scaling.
“Milky Mist Dairy Foods Ltd. opened its initial public offering for subscription on Tuesday, seeking to raise ₹1,553 crore.”
This IPO signals a strategic shift for Milky Mist from a privately held entity to a public company, allowing it to reduce its leverage while funding expansion. The high PE multiple suggests that investors are pricing in significant future growth in the Indian processed dairy sector, though the allocation of nearly a third of the fresh issue to debt repayment highlights a need to clean up the balance sheet before aggressive scaling.
