Milky Mist Dairy Food files DRHP with Sebi for ₹2,035 crore IPO

Milky Mist Dairy Food, a dairy company headquartered in Perundurai, Tamil Nadu, has filed its draft red herring prospectus (DRHP) with market regulator Sebi to raise up to ₹2,035 crore through an initial public offering (IPO). 

Milky Mist Dairy Food IPO is a mix of fresh issue of equity shares worth up to ₹1,785 crore, and an offer for sale (OFS) of shares up to ₹250 crore by promoter shareholders Sathishkumar T and Anitha S.

Additionally, the company may consider raising up to ₹357 crore through a pre-IPO placement. If successful, the size of the fresh issue will be reduced by the amount raised in the pre-IPO round.

The company intends to the proceeds of the IPO for repayment of loans; expansion and modernisation of facility; deployment of coolers; ice cream freezers; and general corporate purposes, as per the DRHP filed with the Sebi on July 21, 2025.

Milky Mist Dairy Food will use ₹750 crore to repay certain outstanding borrowings availed by the company, while another ₹414.71 will be utilised for financing the capital expenditure requirements for the expansion and modernisation of its  Perundurai manufacturing facility. Adding to it, 129.43 crore will be invested in deployment of visi coolers, ice cream freezers and chocolate coolers, and the remaining capital will be used to meet general corporate purposes.

As on May 31, 2025, the total outstanding borrowings stood at ₹1,454.82 crore on a consolidated basis.

Founded in 1997 by T. Sathish Kumar, Milky Mist is engaged in milk procurement, processing, and manufacturing of other dairy products, including frozen food, dairy, desserts, food enhancers and yogurts. It sells products under umbrella brand ‘Milky Mist’, alongside sub-brands like ‘SmartChef’, ‘Capella’, and ‘Misty Lite’, and newly acquired brands such as ‘Briyas’ and ‘Asal’.

The company currently operates from its Perundurai manufacturing facility located in Perundurai, Erode, Tamil Nadu managing a fully integrated supply chain - from sourcing raw materials to processing, packaging, and distribution.

As per Lattice report cited in the DRHP, Milky Mist is the fastest-growing packaged food company in India, with revenue exceeding ₹1,500 crore growing at a CAGR of 29.82% from fiscal 2023 to fiscal 2025.

“In Fiscal 2025, we were the largest private packaged paneer brand in India’s organized market with a 17% market share by value, the largest private packaged cheese brand in South India, and the third-largest nationally among private players, with a 5% share in the organized packaged cheese market,” it mentioned in the DRHP.  

As of fiscal 2025, organised players account for approximately 30% of India’s packaged food market with the market value of ₹4.3 lakh crore and it is expected to reach ₹8 lakh crore by fiscal 2030 with a 13.2% CAGR.

The marketable milk and value-added dairy products (VADP) are valued at ₹5.3 lakh crore and ₹5.5 lakh crore respectively, together accounting for 76% of the overall packaged food market. This is followed by non-alcoholic drinks (8%) and baked products & biscuits (7%).