Milky Mist Dairy Food IPO opens August 11: Check issue size, objectives and key dates

Dairy products manufacturer Milky Mist Dairy Food Ltd will launch its ₹1,553 crore initial public offering on August 11. The issue will end on August 13.

The company has not announced the price band yet. The bidding for anchor investors will occur on August 10.

The initial share sale consists of a fresh issuance of shares valued at ₹1,428 crore and an offer for sale (OFS) component of ₹125 crore by promoters Sathishkumar T and Anitha S.

The net proceeds from the fresh issue will be used for the following objectives:

• Debt repayment of certain outstanding borrowings by the company.
• Capital expenditure requirements for expansion and modernisation of Perundurai Manufacturing Facility.
• Deployment of visi coolers, chocolate coolers and ice cream freezers
• General corporate purposes

"Our company expects that the listing of the equity shares will result in the enhancement of our visibility and our brand image among our existing and potential customers and creation of a public market for our equity shares in India," according to the red herring prospectus (RHP).

Of the total allocation, the company has kept aside half of the net offer for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors.

Milky Mist Dairy Food IPO: Allotment and listing date

Shares of the company will be listed on the National Stock Exchange (NSE) and the BSE.

Milky Mist Dairy Food focuses exclusively on value-added products in the dairy market, which are considered premium. Its product categories include various value-added dairy products like cheese, paneer, curd, ghee, yogurt, ice cream, butter, ultra-high temperature long-shelf-life products, and other items, including frozen foods, ready-to-eat and ready-to-cook products, as well as chocolates.

The company sells its products under the umbrella brand ‘Milky Mist’, and sub-brands such as 'Capella', 'SmartChef' and 'Misty Lite'. It also recently acquired brands like 'Asal' and 'Briyas'.