Milky Mist Dairy Food cuts IPO size to ₹1,553 crore; sets ₹133-140 price band at ₹10,778 crore valuation

Milky Mist Dairy Food Ltd., one of India's fastest-growing premium value-added dairy products companies, is set to launch its initial public offering (IPO) for public subscription on August 11, with the issue closing on August 13.

The Temasek-backed packaged dairy and food company plans to raise ₹1,553 crore through a combination of a fresh issue and an offer for sale (OFS) as it looks to strengthen its balance sheet, expand manufacturing capacity and deepen its distribution network.

The IPO comprises a fresh issue of 10.20 crore equity shares worth ₹1,428 crore and an OFS of 0.89 crore equity shares aggregating to ₹125 crore by existing shareholders. The company has fixed the price band at ₹133-140 per share, valuing it at a market capitalisation of ₹10,777.81 crore at the upper end of the price band.

The Tamil Nadu-based company plans to utilise ₹496.86 crore from the fresh issue proceeds towards the repayment or prepayment of borrowings, ₹469.24 crore for the expansion and modernisation of its Perundurai manufacturing facility, and ₹155.31 crore for deploying visi coolers, ice cream freezers and chocolate coolers to strengthen its retail presence and cold-chain infrastructure. The remaining proceeds will be used for general corporate purposes.

Reduces issue size by ₹482 crore

Milky Mist has reduced the IPO size from the ₹2,035 crore proposed in its draft red herring prospectus (DRHP), filed with the Securities and Exchange Board of India (SEBI) in July 2025. The regulator approved the issue in October 2025.

At the upper end of the price band, the food company is valued at ₹10,777.81 crore, significantly lower than the nearly ₹20,000 crore valuation it had initially targeted for its public listing.

The reduction in the issue size follows a ₹482-crore pre-IPO fundraising completed in April this year from Jongsong Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek Holdings. The transaction comprised a primary investment of ₹357 crore by Jongsong Investments and a secondary share sale worth ₹125 crore by promoters Sathish Kumar T and Anitha S.

Currently, Temasek, through Jongsong Investments, holds around a 5.2% stake in the company.

Key things to know about the IPO

Retail investors can bid for a minimum of 107 equity shares, requiring an investment of ₹14,980 at the upper end of the price band. The share allotment is expected to be finalised on August 14, while the stock is scheduled to debut on the BSE and NSE on August 18.

As per SEBI regulations, up to 50% of the net offer has been reserved for qualified institutional buyers (QIBs), at least 35% for retail individual investors and at least 15% for non-institutional investors (NIIs).

Founded in 2014, the Tamil Nadu-based company has emerged as one of India's leading value-added dairy brands. Its portfolio includes cheese, paneer, butter, curd, ghee, yogurt, ice cream, UHT products, frozen foods, ready-to-eat (RTE) and ready-to-cook (RTC) products, as well as chocolates, marketed under the Milky Mist brand and sub-brands such as SmartChef, Capella, Misty Lite, Briyas and Asal.

The company follows an integrated farm-to-consumer model, procuring milk directly from farmers, processing it through automated manufacturing facilities and distributing products through its own cold-chain logistics network and multi-channel sales platform.

Milky Mist has reported strong financial growth in recent years, driven by rising demand for branded value-added dairy products. For FY26, the company reported total income of ₹3,145.01 crore, up 34% from ₹2,354.79 crore in FY25. Profit after tax surged 176% to ₹127.01 crore from ₹46.07 crore a year earlier, while EBITDA increased to ₹435.22 crore from ₹310.35 crore.

Its balance sheet also strengthened during the year, with total assets rising to ₹2,676.46 crore as of March 31, 2026, from ₹2,150.59 crore a year earlier. Net worth increased to ₹378 crore, while total borrowings stood at ₹1,671.85 crore, reflecting the company's continued investments in capacity expansion and infrastructure.

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