Milky Mist Dairy Food files draft papers with Sebi; seeks to raise Rs 2,035 crore via IPO

New Delhi: Dairy products maker Milky Mist Dairy Food Ltd on Monday filed preliminary papers with capital markets regulator Sebi to raise Rs 2,035 crore through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares worth Rs 1,785 crore and an offer for sale (OFS) of shares valued at Rs 250 crore by promoters, according to the draft red herring prospectus (DRHP).

Proceeds from the fresh issue to the tune of Rs 750 crore will be used for payment of debt, Rs 414 crore for the expansion and modernisation of the Perundurai manufacturing facility, which includes setting up whey protein concentrate, yogurt, and cream cheese plants.

Further, Rs 129 crore will be invested in deploying visi coolers, ice cream freezers, and chocolate coolers, and the remaining funds will be allocated towards general corporate purposes.

Founded in Erode, Tamil Nadu, Milky Mist is a leading dairy brand in India, exclusively focused on premium value-added dairy products, including paneer, cheese, yogurt, ice cream, butter, ghee, and packaged foods.

Unlike traditional dairy companies, Milky Mist does not sell liquid milk, enabling higher margins and strong positioning akin to FMCG companies.

With fully automated, tech-driven manufacturing facilities and an in-house logistics network of end-to-end distribution and control, Milky Mist directly connects with over 67,000 farmers, securing a steady supply of high-quality milk.

On the financial front, the company's revenue from operations stood at Rs 2,349 crore in FY25 and EBITDA or operating profit at Rs 310 crore in FY25.

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