Milky Mist Dairy Food, a prominent player in the dairy sector, is launching its initial public offering (IPO) for subscription on Tuesday, August 11. The company has set the price band for its equity shares at Rs 133 to Rs 140 per share, each with a face value of Rs 2.
Key IPO Dates and Details
The subscription window for the Milky Mist IPO will remain open until Thursday, August 13. Anchor investors will have their allocation finalized a day earlier, on Monday, August 10.
The lot size for the IPO has been fixed at 107 equity shares, with subsequent bids accepted in multiples of 107 shares. The issue structure reserves not more than 50% for qualified institutional buyers (QIBs), not less than 15% for non-institutional investors (NIIs), and not less than 35% for retail investors.
Following the subscription period, the basis of allotment is anticipated to be finalized on Friday, August 14. Refunds for non-allottees are scheduled for Monday, August 17, the same day shares are expected to be credited to the demat accounts of successful allottees. Milky Mist shares are slated to list on both the BSE and NSE on Tuesday, August 18.
Revised Issue Size and Pre-IPO Placement
The total IPO size for Milky Mist has been revised to Rs 1,553 crore. This marks a reduction from the Rs 2,035 crore initially proposed in the draft red herring prospectus (DRHP) filed in July 2025. The adjustment follows a successful pre-IPO placement where the company raised Rs 357 crore.
A significant part of this pre-IPO funding involved Jongsong Investments, a unit of Singapore state investor Temasek, which acquired shares at Rs 139.76 apiece in April. Jongsong Investments now holds approximately a 5.2% stake in Milky Mist. The pre-IPO fundraising saw the issuance of 5.43 lakh equity shares and 2.5 crore compulsorily convertible preference shares, valuing the company at over Rs 10,700 crore.
Post-placement, promoters hold 93% of the company, with public shareholders, including Jongsong Investments, holding the remaining 7%. The IPO itself comprises a fresh issue of shares worth Rs 1,428 crore and an offer-for-sale (OFS) by founders amounting to Rs 125 crore.
Utilizing IPO Proceeds
Milky Mist, known for its diverse range of dairy products including cheese, butter, and ice cream, intends to use a portion of the IPO proceeds for crucial strategic initiatives. A substantial Rs 496.8 crore is earmarked for the repayment or prepayment of existing borrowings, which stood at Rs 1,390.7 crore as of May 2026. Additionally, funds will be allocated to expand and upgrade the company's flagship manufacturing facility located in Perundurai, Tamil Nadu.
The IPO comes at a challenging time for the dairy sector, with some rivals facing margin pressures due to high milk procurement costs and broader market declines. JM Financial, Axis Capital, and IIFL Capital Services are acting as the book-running lead managers for the issue.