3 weeks ago
Milky Mist IPO Subscribed 79% Amid Brokerage Subscribe Calls
Milky Mist is a company that makes dairy foods like cheese, paneer, butter, curd, ghee, yoghurt and ice cream.
It is one of India's fastest-growing packaged food companies.
Milky Mist is now selling its shares to the public for the first time, which is called an IPO.
Big investors have already bought shares at Rs 140 each.
The grey market price suggests the shares could rise by about 16% when trading begins.
On the first day, investors bought about 79% of the shares on offer, with everyday retail investors showing the most interest.
The money raised will help the company pay off loans, build new factories and improve cold storage for its products.
Most stock experts say people should buy the shares, while a few say the price is high and a better deal may come later.
The shares will start trading on August 18 on India's big stock exchanges, the BSE and NSE.
Milky Mist Dairy Food's mainboard IPO - a fresh issue of up to Rs 1,428 crore plus an offer for sale of up to Rs 125 crore - opened on Tuesday, August 11, 2026.
On the first day of bidding, the issue was subscribed 79% overall: retail investors 96%, non-institutional investors 92% and qualified institutional buyers 39%.
The company raised Rs 465.3 crore from 19 anchor investors at Rs 140 per share, the upper end of the price band.
The grey market premium stood at Rs 22.50, implying an estimated listing price of Rs 162.50 and a potential gain of about 16%.
Most brokerages - SBI Securities, SMIFS, BP Equities, Ventura, Sushil Finance, Ajcon, Equivision and Anand Rathi - rated the IPO Subscribe or Subscribe for long-term, while Swastika Investmart was Neutral.
- Who
- Milky Mist Dairy Food, an Erode, Tamil Nadu-based value-added dairy company, along with 19 anchor investors including Temasek-backed Jongsong Investments, and retail, non-institutional and institutional bidders.
- What
- The company's mainboard IPO - a fresh issue of up to Rs 1,428 crore plus an offer for sale of up to Rs 125 crore - which was subscribed 79% on its first day and will list on the BSE and NSE.
- Where
- India; shares will be listed on the BSE and NSE.
- When
- IPO open from August 11 to August 13, 2026; listing scheduled for Tuesday, August 18, 2026.
- Why
- To repay about Rs 497 crore of debt, expand and modernise the Perundurai manufacturing facility, and strengthen cold-chain and retail infrastructure.
IPO Supporters (Subscribe View)
IPO Skeptics / Cautious View
Valuation premium
IPO Supporters (Subscribe View)
The premium valuation is justified by FMCG-like margins, a pure-play value-added dairy business and leadership in paneer, cheese and yogurt categories.
IPO Skeptics / Cautious View
At roughly 85 times FY26 post-IPO earnings versus the dairy sector average of 52.5 times, the IPO appears fully priced; a better entry point may emerge post-listing.
Rating and timing
IPO Supporters (Subscribe View)
Most brokerages - SBI Securities, SMIFS, BP Equities, Ventura, Sushil Finance, Ajcon, Equivision and Anand Rathi - recommend Subscribe or Subscribe for long-term.
IPO Skeptics / Cautious View
Swastika Investmart rates it Neutral and suggests only aggressive investors apply, while Anand Rathi says the upper price band is fully priced.
Leverage risk
IPO Supporters (Subscribe View)
Repaying about Rs 497 crore of debt will cut interest costs and support high double-digit earnings growth ahead.
IPO Skeptics / Cautious View
The company's relatively high leverage remains a key factor for investors to monitor.
Key facts
- Company
- Milky Mist Dairy Food; incorporated July 2014; based in Erode, Tamil Nadu
- IPO structure
- Fresh issue of up to Rs 1,428 crore plus offer for sale of up to Rs 125 crore
- Anchor allocation
- Rs 465.3 crore from 19 anchor investors at Rs 140 per share
- First-day subscription
- 79% overall; RIIs 96%, NIIs 92%, QIBs 39%
- Grey market premium
- Rs 22.50, implying ~16% listing gain; ranged from Rs 0 to Rs 27 over the past seven sessions
- Latest financials
- Revenue Rs 3,145.01 crore; PAT Rs 127.01 crore (labelled FY26 by Sushil Finance; one article's financial-year labelling conflicts)
- Use of proceeds
- About Rs 497 crore debt repayment, Perundurai plant expansion, cold-chain and retail infrastructure, and new whey, yogurt and cream cheese plants
- Listing
- BSE and NSE on August 18, 2026; post-issue valuation around Rs 10,775-10,778 crore
Quotes
Milky Mist Dairy Food
Company statement
“Milky Mist has reserved 50 per cent of the net issue for qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of allocation.”
businesstoday.in
“Milky Mist Dairy Food is a Tamil Nadu-based value-added dairy company with a wide portfolio spanning paneer, cheese, curd, butter, ghee, yoghurt and other products.”
businesstoday.in
Sources
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