Tamil Nadu-based dairy products maker Milky Mist Dairy Food is set to launch its ₹1,553 crore IPO next week from August 11 to 13, with shares expected to list on BSE and NSE on August 18. The company has set the price band at ₹133 to ₹140 per share for the offer, with anchor book opening on August 10 and basis of allotment expected by August 14. As per The Hindu BusinessLine, the proposed public issue comprises a fresh issue of up to ₹14,280 million and an offer for sale of up to ₹1,250 million, with the offer for sale including shares worth ₹750 million by Sathishkumar T and ₹500 million by Anitha S. The company has reserved equity shares worth up to ₹2 crore for employees who may receive them at a discount to the final offer price, with eligible employees bidding under the employee reservation portion receiving a discount of ₹13 per share, bringing their effective cap price to ₹127. Retail investors can bid for a minimum of one lot comprising 107 equity shares and in multiples thereafter, with the minimum investment working out to ₹14,980 at the upper price band.
The company is betting on value-added dairy products rather than milk in pouches to compete with giants such as Amul and Mother Dairy, as reported by Mint. Milky Mist's portfolio includes paneer, cheese, butter, curd, yoghurt, buttermilk, milkshakes, chocolate, ice cream and frozen food items such as parotta. "In the last few years, transformation is happening from the unorganized to organized sector," said Satish Kumar T, chairman and managing director of Milky Mist. "It is not necessary to be present in the milk category. Since we established it as an entire product range, we see a lot of advantages there," added K. Rathnam, chief executive officer. The company has high regional concentration, with South India contributing 69.23% of the revenue in FY26, and paneer brought in 29.42% of the revenue, making Milky Mist the largest paneer maker in South India with a 60% market share.
The dairy sector has faced significant headwinds this year, with Milky Mist's listed peers experiencing substantial declines amid margin pressures from elevated milk procurement costs. As per Business Standard, Hatsun Agro's stock has fallen 7% so far this year, while Dodla Dairy has dropped 16.5%, Heritage Foods has plunged 27%, Parag Milk Foods has tumbled 22%. The company's shares are valued at more than ₹10,700 crore assuming the upper end of the IPO price band, with the company planning to maintain about 30% annual revenue growth going forward. The IPO reduction from the earlier planned ₹2,035 crore was due to completion of pre-IPO fundraising, with the fresh issue component reduced from ₹1,785 crore to ₹1,428.2 crore. According to CNBC TV18, the company initially filed draft papers in July 2025 and received SEBI approval in October 2025.
The IPO comprises ₹1,428.2 crore through fresh equity issuance and ₹125 crore through offer-for-sale by promoters Sathishkumar T and Anitha S. According to The Hindu BusinessLine, the company has reserved equity shares worth up to ₹2 crore for employees who may receive them at a discount to the final offer price. Milky Mist plans to use ₹496.8 crore from net proceeds to repay debt, as its total borrowings stood at ₹1,390.7 crore as of May 2026. The remaining proceeds will fund expansion of its Perundurai manufacturing facility (₹469.2 crore) and deployment of visi coolers, ice cream freezers, and chocolate coolers (₹155.3 crore). The net offer allocation is structured as 50% for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors, with up to 60% of the QIB portion may be allocated to anchor investors on a discretionary basis. Axis Capital, JM Financial, and IIFL Capital Services have been appointed as merchant bankers to manage the IPO, with KFin Technologies serving as the registrar.
Singapore state investor Temasek's unit Jongsong Investments acquired a 5.16% stake in Milky Mist through pre-IPO private placement, raising ₹357 crore by issuing 5.43 lakh equity shares and 2.5 crore compulsorily convertible preference shares at ₹139.76 per share and per CCPS. As per The Hindu BusinessLine, the IPO follows Milky Mist's ₹482 crore pre-IPO funding round in May this year from Jongsong Investments Pte Ltd, an indirect wholly owned subsidiary of Temasek Holdings. The promoters currently hold a 93% stake while public shareholders own the remaining 7%. The company competes with established players including Hatsun Agro, Heritage Foods, Dodla Dairy, Britannia Industries, Nestle India, and Parag Milk Foods, with its products available at more than 375,000 retail outlets across India. The company registered ₹3,200 crore turnover in FY26 and has seen 30% topline growth in the last three to four years.
