Milky Mist Files DRHP for Rs 2,035 Crore IPO

CHENNAI: In a significant move to capitalize on the burgeoning demand for premium dairy products, Milky Mist Dairy Food Limited has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The ambitious initial public offering (IPO) aims to raise up to Rs 2,035 crore, marking a pivotal moment in the company's growth trajectory.

Strategic Allocation of IPO Proceeds

The IPO comprises a fresh issue of up to Rs 1,785 crore and an offer for sale of up to Rs 250 crore by the promoter shareholders. A substantial portion of the proceeds, Rs 750 crore, is earmarked for debt repayment, while Rs 414 crore will fuel the expansion and modernization of its Perundurai manufacturing facility. This includes the installation of advanced plants for whey protein concentrate, yogurt, and cream cheese production.

Expanding India's Dairy Dominance

With a daily paneer production capacity of 150 metric tons, Milky Mist stands as one of India's leading dairy producers. The company plans to allocate Rs 129 crore towards enhancing its distribution network with coolers and freezers, ensuring its premium products reach every corner of the country.

A Vision for Premium Dairy Products

Founded in Erode, Tamil Nadu, Milky Mist has carved a niche in the premium value-added dairy products (VADPs) segment, offering paneer, cheese, yogurt, and more. The IPO reflects the company's commitment to innovation and quality, aiming to meet the growing consumer demand for healthy, premium dairy options.

Financial Highlights and Market Strategy

Milky Mist reported a remarkable revenue of Rs 2,349 crore in FY25, with the southern Indian market contributing 71% to its earnings. The company's strategic focus on new product launches and daily consumption items like paneer and yogurt underscores its robust growth and profitability, with an EBITA margin of 13.2% in FY25.

Leading financial institutions JM Financial Limited, Axis Capital Limited, and IIFL Capital Services Limited are steering the IPO as the book running lead managers, signaling strong market confidence in Milky Mist's vision and potential.