Milky Mist Dairy Food Secures ₹465 Crore from Anchor Investors in Pre-IPO Boost

Milky Mist Dairy Food has secured ₹465.29 crore from anchor investors ahead of its initial public offering (IPO), highlighting strong interest from both domestic and international investors. The company has allocated 3,32,35,713 equity shares to 19 prominent anchor investors, including notable entities such as Zulia Investments PTE Ltd and the International Finance Corporation. This level of participation underscores confidence in Milky Mist’s business model and growth prospects, particularly with a fixed price band of ₹140 per share, which incorporates a premium of ₹138.

The IPO is set to comprise a fresh issue of 102 million equity shares totaling ₹1,428 crore, alongside an offer for sale (OFS) of approximately 8.9 million shares valued at ₹125 crore. The public offering opens for subscription from August 11 to August 13, 2023, with a minimum investment requirement of ₹14,980 for retail investors at the upper price band. Notably, shares are poised for listing on both the NSE and BSE, making them accessible to a broad audience of investors. The basis of allotment is scheduled to be finalized by August 14, thus leading to a planned listing on August 18.

The proceeds from the fresh issue will be strategically allocated for repaying existing borrowings and funding capital expenditure at its Perundurai manufacturing facility. Furthermore, Milky Mist aims to enhance operational efficiencies through investments in visi coolers, ice cream freezers, and chocolate coolers, among other enhancements. It’s critical to note that while the promoter shareholders will benefit from the OFS, Milky Mist itself will not derive any proceeds from this component, as indicated in the company’s red herring prospectus.

The engagement of multiple reputable mutual funds and corporate investors in the anchor book is indicative of a robust market confidence in Milky Mist’s strategic direction. As the company moves forward, its focus on expanding production capabilities and optimizing operations will be closely scrutinized, providing insights into its long-term financial health and competitive positioning in the dairy sector.

Source: The Economic Times

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