Milky Mist Dairy Food shares list at 18% premium over IPO price

Shares of Milky Mist Dairy Food made a strong debut on the stock exchanges on Tuesday, in an otherwise weak broader market. The stock of the Temasek-backed packaged dairy and food company listed at ₹165 on both the BSE and NSE, up 17.86% over its initial public offering (IPO) price of ₹140, giving the company a market capitalisation of ₹12,702.42 crore.

The listing was broadly in line with Street expectations, with Milky Mist Dairy Food commanding a grey market premium (GMP) of ₹19.70 ahead of its debut. The GMP indicated an estimated listing price of ₹159.70, implying a premium of 14.07% over the issue price.

At the time of listing, the BSE Sensex was down 0.40% at 77,418.97, while the Nifty 50 declined 0.26% to 24,223.85.

The ₹1,553-crore IPO of Milky Mist Dairy Food, which was open for bidding from August 11 to 13, was subscribed 56.12 times, led by a strong response from qualified institutional buyers (QIBs).

The portion reserved for QIBs was subscribed 155.83 times, followed by 34.91 times in the non-institutional investors (NII) segment and 8.41 times in the retail segment.

The IPO of Milky Mist Dairy Food, one of India’s fastest-growing premium value-added dairy products companies, comprised a fresh issue of 10.20 crore equity shares worth ₹1,428 crore and an offer for sale (OFS) of 0.89 crore equity shares aggregating to ₹125 crore by existing shareholders.

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.

Milky Mist 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 reduction in the issue size followed 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.

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.

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