Milky Mist Dairy’s Rs 1,553 Crore IPO Fully Subscribed on Day 2 Amid Positive GMP Sentiment.

The initial public offering (IPO) of Milky Mist Dairy Food has demonstrated strong demand, being fully subscribed by the second day of bidding on August 11, 2023. The total issue size is Rs 1,553 crore, receiving bids for 9.55 crore shares against 8.18 crore shares available. Notably, the retail and Non-Institutional Investor (NII) categories saw robust oversubscription, while the portion for Qualified Institutional Buyers (QIBs) was subscribed to only 40%. This strong subscription indicates positive market sentiment and investor interest in the dairy sector.

In the grey market, unlisted shares of Milky Mist Dairy Food are trading at Rs 164, reflecting a grey market premium (GMP) of over 17% above the upper end of the IPO price band of Rs 140. The GMP increased from 16% on Day 1 and 15% a day earlier, showcasing heightened investor confidence in the company’s potential performance. However, it is essential for investors to remember that grey market quotes can fluctuate and may not accurately represent the stock’s eventual listing price.

For Indian investors, the Milky Mist Dairy Food IPO presents an intriguing opportunity, especially given the company’s strong revenue growth and leadership in value-added dairy categories. Anand Rathi has assigned a “Subscribe – Long Term” rating, suggesting that while short-term gains could be appealing due to the GMP, the real value lies in the long-term growth prospects. Investors should view this IPO as a strategic investment rather than just a speculative trade, particularly given the company’s competitive positioning in a growing sector.

Source: The Economic Times

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