Milky Mist Dairy Food, a dairy company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹2,035 crore through an Initial Public Offering (IPO).
The offer comprises a fresh issue of up to ₹1,785 crore and an offer for sale of up to ₹250 crore by promoter shareholders, Sathishkumar T and Anitha S.
The proceeds from the fresh issue will be utilised for multiple purposes. ₹750 crores will be allocated for repayment and prepayment of existing debt, while ₹414 crores will be directed towards expansion and modernisation of its manufacturing facility in Perundurai.
₹750 crore from the fresh issue will be used for repayment/prepayment of outstanding borrowings, ₹414 crore for expansion and modernisation of the Perundurai Manufacturing Facility (including installation of whey protein concentrate, yogurt, and cream cheese plants) and ₹129 crore for deployment of visi coolers, ice cream freezers, and chocolate coolers.
The remainig will be used for general corporate purposes (up to 25% of gross proceeds as per SEBI)
Founded in Erode, Tamil Nadu, Milky Mist has established itself as a leading dairy brand in India, exclusively focused on premium value-added dairy products (VADPs), including paneer, cheese, yogurt, curd, ice cream, butter, ghee, and packaged foods. Unlike traditional dairy companies, Milky Mist does not sell liquid milk, enabling higher margins and strong positioning akin to FMCG companies.
With fully automated, tech-driven manufacturing facilities and an in-house logistics network of end-to-end distribution & control, Milky Mist ensures quality, efficiency, and real-time traceability. The company directly connects with over 67,000 farmers, securing a steady supply of high-quality milk.
Milky Mist’s revenue surged from ₹1,394 crore in FY23 to ₹2,349 crore in FY25, translating to a compound annual growth rate nearing 30%. EBITDA for FY25 stood at ₹310 crore, yielding a margin of 13.2%, among the highest in the sector.
The offering’s book running lead managers include JM Financial and IIFL Capital Services.
