Milky Mist Dairy Food IPO Sees Robust Demand from Qualified Institutional Buyers

The Indian dairy sector has witnessed a significant milestone with the Milky Mist Dairy Food IPO receiving a strong response on the closing day, with the issue subscribed 42.29 times as of 3.12 pm.

Milky Mist IPO Sees Robust Demand from Qualified Institutional Buyers

Qualified institutional buyers led the demand, with their portion subscribed 112.28 times, while the non-institutional investors’ portion was subscribed 31.57 times. The retail portion was subscribed 7.01 times and the employee portion 10.74 times.

The strong demand for the issue is a testament to the growth prospects of the Indian dairy sector, which has been witnessing increasing demand for dairy products.

Key Highlights of the IPO

The ₹1,553-crore IPO has a price band of ₹133-140 per share. The issue comprised a fresh issue of shares worth up to ₹1,428 crore and an offer-for-sale of up to ₹125 crore.

Market Impact and Details

• The issue is the largest IPO by an Indian dairy company, surpassing the previous record held by Parag Milk Foods.
• At the upper end of the price band, the company is expected to command a post-issue market valuation of about ₹10,778 crore.
• The IPO comes after Milky Mist raised about ₹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 ₹357 crore and a secondary share sale of ₹125 crore.

Key Takeaways

• The Milky Mist Dairy Food IPO has received a strong response from investors, with the issue subscribed 42.29 times.
• The issue is the largest IPO by an Indian dairy company, with a post-issue market valuation of about ₹10,778 crore.
• The 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.

FAQs

What is the price band of the Milky Mist Dairy Food IPO?

The price band of the Milky Mist Dairy Food IPO is ₹133-140 per share.

What is the expected post-issue market valuation of Milky Mist Dairy Food?

At the upper end of the price band, the company is expected to command a post-issue market valuation of about ₹10,778 crore.

Who are the book-running lead managers to the issue?

The book-running lead managers to the issue are JM Financial, Axis Capital, and IIFL Capital Services.

Conclusion

The Milky Mist Dairy Food IPO has received a strong response from investors, with the issue subscribed 42.29 times. The issue is the largest IPO by an Indian dairy company, with a post-issue market valuation of about ₹10,778 crore. The company plans to deploy funds towards setting up whey protein concentrate, yoghurt and cream cheese plants, besides installing ice cream freezers and chocolate coolers. Investors are advised to consider the company’s growth prospects and financials before making an investment decision.