Milky Mist Dairy Food Day 3: GMP Indicates 15% Listing Upside — Is It Time to Subscribe?

Milky Mist Dairy Food’s initial public offering (IPO) of ₹1,553 crore is currently in its final bidding phase, having captured substantial interest from investors. With a grey market premium (GMP) consistently around 15% above the upper price band of ₹140 per share, market analysts predict a favorable listing outcome. However, it’s noteworthy that while the positive GMP suggests bullish sentiment, some experts caution that the IPO may already be fully valued at the upper end of the price range, thereby advising potential investors to evaluate their options carefully.

As of Day 2 of the bidding, the IPO was oversubscribed 2.17 times overall, indicating healthy demand across different investor categories. Retail investors demonstrated significant enthusiasm, subscribing 2.44 times their allotted shares. The IPO consists of a fresh issue of 10.20 crore shares worth ₹1,428 crore, alongside an offer for sale (OFS) of 0.89 crore shares. Prime shareholders will seek liquidity through the OFS, which allows them to partially reduce their stakes while helping the company secure necessary capital for growth initiatives.

With the proceeds from the IPO earmarked for debt repayment, capacity expansion, and enhancing distribution capabilities, Milky Mist Dairy Food appears poised for growth. The company’s strong financial performance, highlighted by a 34% increase in total income and a dramatic 176% jump in profit after tax in FY26, further bolsters the case for long-term investment. Given these factors, coupled with a positive grey market outlook, investors may find the Milky Mist IPO a compelling opportunity for sustained investment rather than a quick listing gain.

Source: The Economic Times

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