Upcoming IPO: Milky Mist Dairy Food files DRHP with SEBI for ₹2,035 crore IPO

Upcoming IPO: Milky Mist Dairy Food Ltd, which is involved in manufacturing dairy products, on Monday filed draft papers with the capital markets regulator, the Securities and Exchange Board of India, to raise ₹2,035 crore via an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), the proposed IPO will be a combination of new equity shares valued at ₹1,785 crore and an offer for sale aggregating to ₹250 crore by promoters.

Milky Mist IPO: Objectives

The capital raised to the tune of ₹750 crore will be utilised for debt repayment and ₹414 crore to expand and modernise the Perundurai manufacturing plant, which includes establishing whey protein concentrate, cream cheese, and yogurt plants.

It will also invest ₹129 crore to deploy visi coolers, chocolate coolers and ice cream freezers. A portion will also be used for general corporate purposes.

Founded in Tamil Nadu's Erode, Milky Mist is among India's leading dairy brands, primarily focused on premium value-added dairy products such as cheese, paneer, yogurt, ice cream, ghee, butter, and packaged foods.

In contrast to traditional dairy firms, Milky Mist does not sell liquid milk, allowing higher margins and strong positioning akin to fast-moving consumer goods (FMCG) companies.

With fully automated, technology-driven manufacturing plants and an in-house logistics network of end-to-end distribution and control, the firm directly connects with more than 67,000 farmers, resulting in a steady supply of top-grade milk.

Its sub-brands include Asal, Shart Chef, Misty Lite, and Capella. Its listed competitors include Dodla Dairy, Parag Milk Foods, Britannia Industries, Hatsun Agro and Nestle India.

The company had posted a revenue from operations of ₹2,349 crore in the financial year 2024-25 (FY25) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) or operating profit at ₹310 crore in FY25.

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