Milky Mist Receives SEBI Approval for ₹2,000 Crore IPO Aiming at Debt Reduction and Expansion
Milky Mist Dairy Food Private Ltd., a leading player in the Value-Added Dairy Products (VADP) sector, has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its Initial Public Offering (IPO) worth ₹2,000 crore. The IPO structure includes a Fresh Issue of equity shares amounting to ₹1,000 crore and an Offer For Sale (OFS) component of ₹1,000 crore, allowing existing shareholders an exit option.
The proceeds from the Fresh Issue are earmarked primarily for the repayment or prepayment of borrowings and financing capital expenditure for future expansion projects. This strategic move is seen as a balance sheet management exercise and a mechanism to support aggressive growth in the competitive VADP market.
Financially, Milky Mist reported revenues of ₹2,876 crore for the fiscal year ending March 2024, up from ₹2,357 crore in the previous year. Despite the revenue growth, net profits slightly declined from ₹55 crore in FY23 to ₹51 crore in FY24, highlighting the challenges of maintaining profitability amid rising input costs.
To manage the IPO, Milky Mist has appointed top-tier investment banks including BofA Securities India, J P Morgan India, and JM Financial as Book Running Lead Managers (BRLMs). Their involvement underscores the company’s credibility and its pivotal role in the modernization of the Indian dairy industry.
