The much-awaited Milky Mist Dairy Food IPO has opened for public subscription today, August 11.
The ₹1,553-crore IPO will remain open until August 13.
However, the IPO has received a relatively slow response on its opening day.
As of 11:04 am on August 11, the issue was subscribed 0.17 times, according to NSE data.
The company received bids for around 1.31 crore shares, compared with 7.77 crore shares on offer.
The retail investor portion was subscribed 0.26 times, while the non-institutional investor (NII) category received 0.19 times subscription.
Milky Mist shares are proposed to be listed on both the BSE and NSE on August 18.
Milky Mist IPO Price, Lot Size and Investment
Milky Mist has fixed the IPO price band at ₹133 to ₹140 per share.
Investors can apply for a minimum of one lot containing 107 shares.
At the upper price band of ₹140, investors will need to spend at least ₹14,980 to apply for one lot.
The IPO includes a fresh issue of shares worth up to ₹1,428 crore and an offer for sale (OFS) of ₹125 crore by existing shareholders.
The company had earlier planned a larger IPO of ₹2,035 crore, but later reduced the issue size.
Milky Mist IPO GMP: What Is the Grey Market Saying?
Milky Mist shares were commanding a grey market premium (GMP) of around ₹20.50 per share on August 11, according to market observers.
Based on the upper IPO price of ₹140, this suggests a possible listing price of around ₹160.50 per share.
If the GMP remains at this level, the potential listing gain could be around 14.64% over the upper issue price.
However, investors should not treat GMP as a guarantee of listing gains.
The grey market is unofficial, and the premium can change depending on market conditions and investor sentiment.
Should You Apply for the Milky Mist IPO?
SBI Securities has given a ‘Subscribe’ recommendation to the IPO.
The brokerage highlighted Milky Mist’s growing business in value-added dairy products, improving margins and strong earnings growth.
Between FY24 and FY26, the company’s revenue grew at a CAGR of 31.3%, while EBITDA grew 40.5% and profit after tax (PAT) increased at a CAGR of 155.6%.
Its EBITDA margin also improved to 13.7% in FY26, up from the previous year.
However, there is also a valuation concern.
At the upper price band, the IPO is valued at around 84.9 times its FY26 price-to-earnings (PE) ratio.
This means investors are being asked to pay a relatively high valuation for the company’s earnings.
SBI Securities expects the company’s plan to reduce debt to help lower interest costs and improve profitability.
Where Will Milky Mist Use the IPO Money?
A major portion of the IPO proceeds will be used to reduce the company’s debt.
Milky Mist plans to use around ₹497 crore to repay debt.
The company will also invest in expanding and modernising its manufacturing facility at Perundurai in Tamil Nadu.
Funds will be used for projects including new whey protein concentrate, yogurt and cream cheese plants.
The company also plans to strengthen its cold-chain infrastructure by installing equipment such as visi coolers, ice cream freezers and chocolate coolers.
Some of the money will also be used for general corporate purposes.
Milky Mist IPO: Other Important Details
Before the IPO opened, Milky Mist raised around ₹465.30 crore from anchor investors.
The company had also raised approximately ₹482 crore in a pre-IPO round in May, including investment from Jongsong Investments Pte Ltd, an indirect wholly owned subsidiary of Temasek Holdings.
At the upper end of the IPO price band, Milky Mist is expected to have a post-issue valuation of around ₹10,778 crore.
Founded in Erode, Tamil Nadu, Milky Mist focuses on value-added dairy products such as paneer, cheese, curd, yogurt, butter, ghee and ice cream.
Unlike some other dairy companies, Milky Mist does not operate in the liquid milk segment.
The company’s 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 for the IPO, while KFin Technologies is the registrar.
Milky Mist IPO at a Glance
IPO size: ₹1,553 crore
Price band: ₹133–₹140 per share
Lot size: 107 shares
Minimum investment: ₹14,980 at the upper price band
IPO dates: August 11–13
Expected listing: August 18
GMP: Around ₹20.50
Potential GMP-based listing price: Around ₹160.50
Listing exchanges: BSE and NSE
Investors should consider the company’s financial performance, valuation, business prospects and risks before making an investment decision.
GMP is unofficial and should not be considered a guaranteed indicator of the IPO’s listing price or returns.
