Milky Mist sets Rs 133-140 IPO price band; Rs 1,553 crore issue opens Aug 11

Dairy products maker Milky Mist Dairy Food Ltd has fixed a price band of Rs 133 to Rs 140 per share for its Rs 1,553 crore initial public offering (IPO), which will open for subscription on Aug. 11.

The public issue will close on Aug. 13, while the anchor investor portion will open on Aug. 10, the company said on Thursday.

The IPO comprises a fresh issue of shares worth Rs 1,428 crore and an offer for sale of Rs 125 crore, making it the largest public issue by an Indian dairy company.

At the upper end of the price band, the company is expected to command a post-issue valuation of about Rs 10,778 crore.

Milky Mist said the proceeds from the fresh issue will be used to repay borrowings, expand and modernise its manufacturing facility at Perundurai in Tamil Nadu, and strengthen its cold-chain infrastructure. The funds will also support the development of whey protein concentrate, yoghurt and cream cheese plants, along with general corporate purposes.

Founded in Erode, Tamil Nadu, Milky Mist focuses on value-added dairy products, including paneer, cheese, curd, yoghurt, butter, ghee and ice cream. The company does not operate in the liquid milk segment.

The issue reserves 50% for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.

The shares are proposed to be listed on the BSE and NSE on Aug. 18.