Milky Mist Dairy Food IPO Sees 40% Subscription on Day 1 Amid Signals of 15% Listing Gain—Is It Worth Investing?
The Milky Mist Dairy Food IPO opened for subscription on August 11 and has shown strong interest from investors, with the issue having 41% subscription on the first day. In particular, the retail portion was met with robust demand, achieving a 61% subscription rate against the 4.08 crore shares allocated for retail investors. The overall offering comprises 8.17 crore shares, and the company is aiming to raise a total of Rs 1,553 crore through this book-built issue. The share price is set between Rs 133 and Rs 140, with a lot size of 107 shares, requiring retail investors to make a minimum investment of Rs 14,980 at the upper price band.
Another noteworthy aspect of the Milky Mist IPO is the active grey market sentiment, where the Grey Market Premium (GMP) is currently estimated at 15% above the upper issue price of Rs 140 per share. This suggests that the shares could debut at around Rs 160, indicating strong investor confidence prior to listing. However, market analysts caution that while the GMP is a positive indicator, it is an unofficial metric that can be volatile and should not be solely relied upon. Instead, they recommend evaluating the company’s fundamentals and growth prospects alongside the GMP.
For Indian investors, the Milky Mist Dairy Food IPO presents both an opportunity and a cautionary tale. While the company has demonstrated impressive financial performance, with a 34% year-on-year growth in total income and a 176% increase in profit after tax in FY26, some analysts believe the IPO is fully valued at the upper price band. This duality suggests that investors looking for short-term gains should consider the volatility, whereas those with a long-term investment horizon might find justification in the company’s growth potential and premium positioning in the dairy sector. Overall, the “Subscribe – Long Term” recommendation from analysts indicates that the IPO could be a beneficial addition to an investor’s portfolio for those willing to hold it beyond the initial listing period.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)