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According to market observers, unlisted shares of Milky Mist Dairy Food command a grey market premium (GMP) of around Rs 20.5 per share, indicating a 14.6% potential listing gain.
Milky Mist IPO.
Milky Mist IPO Day 1: The initial public offering (IPO) of packaged food company Milky Mist Dairy Food Ltd opened for public subscription today, August 11. As of 11:04 am on August 11 (Day 1), the public issue has been subscribed only 0.17 times. The Rs 1,553-crore IPO will be closed today, August 13.
According to NSE data, the IPO received bids for 1.31 crore shares against 7.77 crore shares on offer, translating into an overall subscription of 0.17 times. The retail investor category has received 0.26 times, while the NII category received 0.19 times subscription.
The company’s shares are proposed to be listed on both the BSE and the NSE on August 18. The proposed issue is set to be the largest IPO by an Indian dairy company. Listed peers in the sector include Parag Milk Foods Ltd, Hatsun Agro Product Ltd and Dodla Dairy Ltd.
Milky Mist IPO Price Band and Lot Size
Milky Mist has fixed the IPO price band at Rs 133-140 per share. Investors can apply for a minimum of one lot comprising 107 shares, requiring a minimum investment of Rs 14,980 at the upper end of the price band.
The public issue consists of a fresh issue of equity shares worth Rs 10.20 crore and an offer for sale (OFS) of Rs 125 crore by existing shareholders, taking the total issue size to Rs 1,553 crore.
Milky Mist IPO GMP Today
According to market observers, unlisted shares of Milky Mist Dairy Food Ltd were commanding a grey market premium (GMP) of around Rs 20.5 per share on Tuesday.
Based on the upper price band of Rs 140, the GMP indicates a potential listing price of around Rs 160.5 per share, which is a 14.64 per cent listing gain. However, investors should note that the grey market is unofficial and GMP keeps changing based on investor sentiments.
Milky Mist IPO: Should You Apply?
SBI Securities has recommended a ‘Subscribe’ rating for the Milky Mist Dairy Food IPO, highlighting the company’s growing presence in value-added dairy products (VADP), improving margins and strong earnings growth prospects.
The brokerage noted that Milky Mist recorded a compound annual growth rate (CAGR) of 31.3% in revenue, 40.5% in EBITDA and 155.6% in profit after tax (PAT) between FY24 and FY26. Its EBITDA margin also improved to 13.7% in FY26, rising 70 basis points year-on-year and 180 basis points compared with FY24.
However, SBI Securities pointed out that the IPO is priced at a post-issue FY26 price-to-earnings (PE) multiple of 84.9 times at the upper end of the price band, indicating a premium valuation.
The company plans to use Rs 497 crore of the IPO proceeds to repay debt. SBI Securities expects the deleveraging to lower interest costs and improve profitability going forward. The brokerage also believes that debt reduction, coupled with higher capacity utilisation, could support high double-digit earnings growth in the coming years.
Milky Mist IPO: Key Details
Ahead of the IPO, Milky Mist Dairy Food Ltd on Monday raised Rs 465.30 crore from anchor investors. The issue comprises a fresh share sale of up to Rs 1,428 crore and an offer for sale (OFS) of up to Rs 125 crore.
Earlier, Milky Mist had planned to raise Rs 2,035 crore through its IPO, comprising a fresh issue of Rs 1,785 crore and an OFS of Rs 250 crore.
At the upper end of the price band, the company is expected to command a post-issue market valuation of about Rs 10,778 crore.
The IPO comes after Milky Mist raised about Rs 482 crore in a pre-IPO round in May from Jongsong Investments Pte Ltd, an indirect wholly owned subsidiary of Temasek Holdings. The transaction comprised a primary capital infusion of Rs 357 crore and a secondary share sale of Rs 125 crore.
Proceeds from the fresh issue will be used for repayment or prepayment of borrowings, expansion and modernisation of the company’s manufacturing facility at Perundurai in Tamil Nadu, and strengthening its cold-chain infrastructure.
The company plans to deploy funds towards setting up whey protein concentrate, yogurt and cream cheese plants, besides installing visi coolers, ice cream freezers and chocolate coolers. A portion of the proceeds will also be used for general corporate purposes.
Founded in Erode, Tamil Nadu, Milky Mist is focused on value-added dairy products such as paneer, cheese, curd, yogurt, butter, ghee and ice cream, among others. The company does not operate in the liquid milk segment.
The equity shares are proposed to be listed on the BSE and NSE on August 18.
JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers to the issue, while KFin Technologies is the registrar.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
August 11, 2026, 11:31 IST
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