2 weeks ago
Milky Mist shares list at 18% premium on debut
Milky Mist is a company from Tamil Nadu that makes popular dairy foods like paneer, cheese, butter, curd, yoghurt and ice cream.
For the first time, it sold its shares to the public, which is called an IPO.
Each share was sold for ₹140, but when trading started on the stock market, the price jumped to ₹165.
Many people who bought shares made money right away, and the price soon rose to about ₹181.50.
A lot of investors wanted these shares, so the IPO was subscribed more than 56 times over.
The company raised about ₹1,553 crore, making it the biggest dairy IPO ever in India.
It will use the money to pay off loans, modernise its Perundurai factory and improve its cold-chain network.
Investors were excited because Milky Mist makes value-added dairy products and does not sell plain liquid milk.
Milky Mist Dairy Food shares listed at ₹165 on the NSE and BSE, a premium of nearly 18% over the ₹140 IPO price.
The stock surged nearly 30% to around ₹181.45-₹181.50 in early trade, giving the company a market valuation of ₹13,968.81 crore.
The ₹1,553 crore IPO comprised a fresh issue of ₹1,428 crore and an offer for sale of ₹125 crore, making it the largest dairy IPO in India.
The issue was subscribed 56.12 times overall, with the QIB portion subscribed 155.83 times; one report cited 41.17 times overall.
Proceeds will be used to repay borrowings, modernise the Perundurai plant in Tamil Nadu and strengthen cold-chain infrastructure.
- Who
- Milky Mist Dairy Food Ltd, an India-based packaged dairy food company, and its investors including qualified institutional buyers, non-institutional investors, retail investors and employees.
- What
- The company's shares made a strong stock market debut, listing at ₹165 and surging nearly 30% in early trade.
- Where
- On the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India; the company is based in Erode, Tamil Nadu.
- When
- Tuesday, August 18, 2026; the IPO bidding ran from August 11 to August 13, 2026.
- Why
- To raise funds for repaying borrowings, expanding and modernising its manufacturing facility at Perundurai, Tamil Nadu, and strengthening cold-chain infrastructure.
Valuation premium justified
IPO fully priced
IPO valuation
Valuation premium justified
Anand Rathi Research noted Milky Mist's strong revenue growth, leadership in key value-added dairy categories and premium positioning could justify a valuation premium despite an implied P/E of 84.9x on FY2026 earnings.
IPO fully priced
The same firm said the IPO valuation appears fully priced at the upper band and recommended only a 'Subscribe – Long Term' rating.
Pricing expectations
Valuation premium justified
The overwhelming subscription of more than 56 times and a near-30% listing surge indicate strong investor confidence in the stock.
IPO fully priced
The grey market premium of ₹19.7 before listing implied an estimated debut of only ₹159.7, suggesting the market's expectations were more modest than the actual listing.
Key facts
- IPO price
- ₹140 per share (price band ₹133-140)
- Listing price
- ₹165 per share (~18% premium)
- Intraday high
- ₹181.45 on BSE / ₹181.50 on NSE (~30% gains)
- IPO size
- ₹1,553 crore (fresh issue ₹1,428 crore; OFS ₹125 crore)
- Overall subscription
- 56.12 times (one report cited 41.17 times)
- QIB subscription
- 155.83 times (one report cited 110.86 times)
- Anchor investment
- ₹465.30 crore
- Bidding period
- August 11-13, 2026
Quotes
Anand Rathi Research Team
Research analysts at Anand Rathi
“"Milky Mist Dairy Food, at an implied P/E of 84.9x on FY2026 earnings at the upper price band. Given its strong revenue growth, leadership in key value-added dairy categories and premium positioning, the company may command a valuation premium."”
financialexpress.com
“"However, the IPO valuation appears fully priced at the upper band, and hence, we recommend a ‘Subscribe – Long Term’ rating to the IPO."”
financialexpress.com
Sources
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