Milky Mist Sets IPO Price Band at Rs 133-140 for Rs 1,553-Crore Offering, Opening on August 11.

Milky Mist Dairy Food, backed by Temasek, has announced its initial public offering (IPO) price band set between Rs 133 and Rs 140 per share. The IPO aims to raise Rs 1,553 crore, opening for subscription from August 11 to August 13, 2023, with the anchor investor portion available from August 10. Retail investors can subscribe for a minimum of one lot comprising 107 shares, requiring an investment of Rs 14,980 at the upper price band. With the upper price band valuation of Rs 140, Milky Mist’s market capitalization is around Rs 10,778 crore, approximately half that of its listed peer, Hatsun Agro Product.

The IPO’s size has been revised down from an initial Rs 2,035 crore due to a pre-IPO stake sale to Jongsong Investments, a Temasek subsidiary. The public issue includes a fresh issue of Rs 1,428.2 crore and an offer for sale of Rs 125 crore. A substantial 50% of the issue is allocated for qualified institutional buyers (QIBs), while 15% is reserved for non-institutional investors (NIIs) and 35% for retail investors. As of now, the grey market sentiment around the Milky Mist IPO has not been specifically mentioned, indicating potential caution among investors.

For Indian investors, this IPO represents an opportunity to engage with a key player in the competitive dairy sector amid fluctuating market conditions. With a strong growth trajectory evidenced by a 176% YoY profit increase and a 33.6% rise in revenue for FY 2026, Milky Mist’s strategic plans for debt repayment and expansion signal a commitment to long-term growth. However, the current market challenges faced by dairy companies due to rising procurement costs and other economic factors should prompt investors to carefully consider their investment strategy.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)