Tamil Nadu-based Milky Mist Dairy Food Ltd. is preparing to launch its ₹2,035 crore initial public offering (IPO) as early as July-end or early August, potentially becoming India’s largest dairy-sector IPO.
The company has completed investor roadshows and is targeting the share sale launch soon, according to people familiar with the development. Milky Mist has not officially confirmed the IPO timeline.
The proposed IPO comes at a time when dairy stocks have underperformed the broader market. Shares of companies such as Parag Milk Foods, Dodla Dairy and Hatsun Agro Product have witnessed declines this year amid challenging market conditions.
According to the draft prospectus, the IPO will include a fresh issue of shares worth up to ₹1,785 crore and an offer for sale (OFS) of shares worth up to ₹250 crore by existing shareholders. The company may also raise up to ₹357 crore through a pre-IPO placement, which could reduce the size of the fresh issue.
Milky Mist plans to utilise the IPO proceeds to expand its manufacturing capacity and repay existing debt, according to its regulatory filing.
The company has appointed JM Financial, Axis Capital and IIFL Capital Services as the book-running lead managers for the issue.
If launched successfully, the IPO will mark a major milestone for India’s dairy industry and provide Milky Mist with additional capital to strengthen its production capabilities and expand its market presence.
