Milky Mist Dairy Food mops up ₹465 crore from anchor investors ahead of IPO

Milky Mist Dairy Food has raised ₹465.29 crore from anchor investors ahead of its initial public offering (IPO), which opens for subscription on Tuesday, August 11. The company has allotted 3,32,35,713 equity shares to 19 anchor investors at the upper price band of ₹140 per share, including a share premium of ₹138 per equity share. The bidding for the anchor portion concluded on Monday, August 10, according to the exchange filing.

The anchor book saw participation from international and domestic investors, including Zulia Investments PTE Ltd, a subsidiary of Temasek, and the International Finance Corporation (IFC). Other marquee investors in the anchor book included Nippon Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, 360 One, White Oak, Invesco Mutual Fund, Motilal Oswal Mutual Fund, Edelweiss Mutual Fund, HSBC Mutual Fund, Trust Mutual Fund and Union Small Cap Fund.

Milky Mist Dairy Food IPO comprises a fresh issue of 102 million equity shares aggregating to ₹1,428 crore and an offer for sale (OFS) of up to 8.9 million shares worth ₹125 crore by promoters Sathishkumar T and Anitha S. The public issue will remain available for subscription till August 13. The basis of allotment is expected to be finalised on August 14.


The price band has been fixed at ₹133-140 per equity share. Investors can bid for a minimum of 107 shares and in multiples thereof. At the upper price band, the minimum investment required for a retail investor is ₹14,980 for one lot of 107 shares. Shares of Milky Mist Dairy Food are proposed to be listed on the NSE and BSE, with the tentative listing date set for August 18.

The company said it will not receive any proceeds from the offer for sale (OFS) component. “Our Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale by the Promoter Selling Shareholders will not form part of the Net Proceeds. The Promoter Selling Shareholders shall be entitled to receive the proceeds of the Offer for Sale, after deducting their respective proportion of the Offer-related expenses and the relevant taxes thereon,” the company said in its red herring prospectus.

Milky Mist Dairy Food proposes to utilise the proceeds from the fresh issue for the repayment or prepayment, in full or in part, of certain outstanding borrowings availed by the company. The company also plans to use the proceeds to finance capital expenditure requirements related to the expansion and modernisation of its Perundurai manufacturing facility, as well as for the deployment of visi coolers, ice cream freezers and chocolate coolers. The remaining proceeds will be used for general corporate purposes.

KFin Technologies is the registrar to the issue, while JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers.

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