Milky Mist IPO price band fixed at Rs 133-140 for Rs 1,553-crore IPO; issue opens on August 11

Temasek-backed Milky Mist Dairy Food has set the price band for its initial public offering (IPO) at Rs 133-140 per share. The Rs 1,553 crore public issue will open for subscription on August 11 and close on August 13, while the anchor investor portion is scheduled to open on August 10.

Retail investors can apply for a minimum of one lot comprising 107 equity shares, and in multiples thereafter. At the upper end of the price band, the minimum investment required is Rs 14,980.

Based on the upper price band of Rs 140 per share, the company is valued at around Rs 10,778 crore, which is a little over half the market capitalisation of listed peer Hatsun Agro Product.

Milky Mist IPO details

The Tamil Nadu-based dairy products maker has trimmed the size of its IPO from the earlier planned Rs 2,035 crore to Rs 1,553 crore after a pre-IPO stake sale to Jongsong Investments, a subsidiary of Singapore state investor Temasek.

The public issue consists of a fresh issue of shares worth Rs 1,428.2 crore and an offer for sale (OFS) of Rs 125 crore by existing shareholders. Half of the issue has been earmarked for qualified institutional buyers (QIBs), while non-institutional investors (NIIs) have been allocated 15%. The remaining 35% has been reserved for retail investors.

Jongsong Investments currently holds about 5.2% in Milky Mist after purchasing shares at Rs 139.76 apiece through a pre-IPO placement in April.

Axis Capital, JM Financial and IIFL Capital Services are the book-running lead managers for the issue. Milky Mist is expected to list on the BSE and NSE on August 18.

Also read: To IPO, or to Ipostpone? Zepto’s IPO pause could be a blessing in disguise

Milky Mist IPO proceeds

Milky Mist, which exclusively manufactures value-added dairy products, will use Rs 496.8 crore from the net proceeds of the fresh issue to repay debt. The company had total borrowings of Rs 1,390.7 crore as of May 2026.

It has also earmarked Rs 469.2 crore for the expansion and modernisation of its manufacturing facility at Perundurai. Another Rs 155.3 crore will be invested in deploying visi coolers, ice cream freezers and chocolate coolers. The remaining proceeds will be used for general corporate purposes.

Read more: India’s IPO boom cools as weak markets force issuers to cut back

About Milky Mist

The company sells its products under the flagship Milky Mist brand, along with sub-brands including SmartChef, Capella and Misty Lite. Its manufacturing operations are currently based out of Perundurai in Tamil Nadu.

Milky Mist, which says it is the largest private packaged paneer brand in the organised market, reported a profit of Rs 127 crore for the financial year ended March 2026, up 176% from Rs 46.1 crore a year earlier. Its revenue rose 33.6% to Rs 3,138.4 crore during the same period.

The company's listed peers have been grappling with margin pressure this year due to elevated milk procurement costs and broader weakness in the equity market.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)