Milky Mist Dairy Food’s ₹1,553 crore IPO has entered its third and final day of bidding, attracting strong investor interest. With the Grey Market Premium (GMP) hovering around 15% above the upper price band of ₹140 per share, market sentiment indicates the possibility of a healthy listing, provided the trend holds.
However, analysts caution that the IPO appears fully valued at the upper end of its price band. Despite the valuation concerns, Anand Rathi has assigned a “Subscribe – Long Term” rating, indicating potential appeal for investors with a longer investment horizon.
Milky Mist IPO Sees Strong Subscription
On the second day of bidding, the issue was subscribed 2.17 times overall, against 8.17 crore shares on offer. Retail investors subscribed 2.44 times their allocated portion of 4.08 crore shares.
The ₹1,553 crore book-built issue comprises a fresh issue of 10.20 crore shares worth ₹1,428 crore and an Offer for Sale (OFS) of 0.89 crore shares valued at ₹125 crore.
Under the OFS component, promoter shareholders Sathishkumar T. and Anitha S. will sell shares worth ₹75 crore and ₹50 crore, respectively. The OFS will allow the promoters to partially reduce their stake, while the majority of the IPO proceeds will come from the fresh issue.
Milky Mist Dairy Food has also raised ₹465.29 crore from anchor investors by allotting 3.32 crore equity shares to 19 investors at the upper price band of ₹140 per share.
The basis of allotment is expected to be finalised on August 14, while the shares are tentatively scheduled to list on the NSE and BSE on August 18, subject to the final timetable.
The IPO carries a price band of ₹133–₹140 per share, with a lot size of 107 shares. At the upper price band, retail investors need a minimum investment of ₹14,980 for one lot.
Milky Mist IPO Subscription Status
On Day 2, the IPO received bids for 2.17 times the shares available.
- Retail investors: 2.44 times
- Non-Institutional Investors: 3.56 times
- Qualified Institutional Buyers: 65%
The relatively stronger participation from retail and non-institutional investors contrasted with subdued demand from qualified institutional buyers.
How Milky Mist Plans to Use IPO Proceeds
Milky Mist Dairy Food plans to use the net proceeds primarily to strengthen its balance sheet and expand manufacturing capacity.
Of the estimated ₹1,121.41 crore available for deployment:
- ₹496.86 crore will be used to repay or prepay outstanding borrowings.
- ₹469.24 crore will fund capital expenditure for the expansion and modernisation of its Perundurai manufacturing facility.
- ₹155.31 crore will be invested in visi coolers, ice cream freezers and chocolate coolers.
- The remaining amount will be used for general corporate purposes.
The planned deployment reflects the company’s focus on deleveraging, production expansion and strengthening its distribution network.
Strong Improvement in Financial Performance
Milky Mist Dairy Food reported significant growth in FY26.
Total income increased 34% year-on-year to ₹3,145.01 crore, compared with ₹2,354.79 crore in FY25.
Profit after tax (PAT) increased sharply by 176% to ₹127.01 crore, compared with ₹46.07 crore in the previous financial year.
The improvement in profitability is one of the factors supporting investor interest in the IPO.
About Milky Mist Dairy Food
Incorporated in July 2014, Milky Mist Dairy Food is an Indian packaged food company focused on premium and value-added dairy products.
Its portfolio includes:
- Cheese
- Paneer
- Butter
- Curd
- Ghee
- Yogurt
- Ice cream
- UHT products
- Frozen foods
- Ready-to-eat products
- Ready-to-cook products
- Chocolates
The company’s products are sold under the flagship Milky Mist brand and sub-brands including SmartChef, Capella, Misty Lite, Briyas and Asal.
The company follows an integrated farm-to-consumer model, sourcing milk directly from farmers and processing it through automated manufacturing facilities. It also operates an in-house cold-chain logistics network and a multi-channel distribution system serving customers across India.
Milky Mist has invested in technology-driven manufacturing, product innovation and sustainable production practices. The company has 1,317 permanent employees across manufacturing, sales and marketing, quality control and milk collection operations.
Should Investors Subscribe to the Milky Mist IPO?
According to Anand Rathi, Milky Mist Dairy Food is valued at an implied P/E multiple of 84.9x based on FY2026 earnings at the upper end of the IPO price band.
The brokerage highlighted the company’s strong revenue growth, leadership across key value-added dairy categories and premium positioning as factors that could support a valuation premium.
However, it also noted that the IPO appears fully valued at the upper price band.
Anand Rathi has therefore assigned a “Subscribe – Long Term” rating, suggesting that the company’s growth prospects may be more relevant to long-term investors than short-term listing gains.
With strong FY26 financial growth, planned debt reduction, manufacturing expansion and a positive grey-market signal, the Milky Mist IPO is expected to remain closely watched as investors assess its listing prospects and long-term potential.