Shares of Milky Mist Dairy Food Ltd made a strong debut on the Indian stock exchanges on Tuesday, August 18, ending nearly 30% above their IPO issue price of ₹140.
The stock opened at ₹165 per share on both the BSE and NSE, representing a 17.85% premium to the issue price. By the end of trading, the shares had climbed further to ₹181.45 on the BSE and ₹181.50 on the NSE, translating into gains of 29.60% and 29.64%, respectively.
Following the strong debut, Milky Mist Dairy Food reached a market valuation of approximately ₹13,968.81 crore.
Strong investor demand
The company’s ₹1,553-crore IPO received significant investor interest, with the issue subscribed 56.12 times by the final day of bidding.
The IPO was offered in a price band of ₹133–₹140 per share and comprised:
- Fresh issue: ₹1,428 crore
- Offer for sale: ₹125 crore
- Issue size: ₹1,553 crore
The strong listing makes Milky Mist’s offering the largest IPO by an Indian dairy company to date.
IPO proceeds to support expansion
Milky Mist plans to use proceeds from the fresh issue for several strategic initiatives, including repayment or prepayment of borrowings, expansion and modernisation of its manufacturing facility at Perundurai, Tamil Nadu, and strengthening its cold-chain infrastructure.
The company also plans to invest in new production capabilities, including:
- Whey protein concentrate facilities
- Yoghurt manufacturing
- Cream cheese production
- Ice cream freezers
- Chocolate coolers
These investments are expected to support the company’s expansion in value-added dairy categories.
Focus on value-added dairy products
Founded in Erode, Tamil Nadu, Milky Mist has built its business around value-added dairy products rather than liquid milk.
Its portfolio includes paneer, cheese, curd, yoghurt, butter, ghee and ice cream, among other products.
The company has been expanding its manufacturing, distribution and cold-chain capabilities to support its growing presence across India’s packaged dairy market.
Growing listed dairy sector
Milky Mist’s listing adds another major player to India’s publicly traded dairy sector.
Its listed peers include Parag Milk Foods, Hatsun Agro Product and Dodla Dairy.
The strong debut reflects investor interest in India’s growing packaged and value-added dairy market, particularly categories such as paneer, cheese, yoghurt and ice cream.
