Milky Mist Secures SEBI Approval for ₹750 Crore Dairy IPO

Milky Mist Dairy Food Private Ltd., a prominent player in the Indian dairy market based in Tamil Nadu, has secured regulatory approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The company aims to raise ₹750 crore (approximately $90 million USD) through this IPO, which is structured entirely as a fresh issue of equity shares.

The capital raised will be used to fund major capital expenditures aimed at expanding and modernizing Milky Mist's manufacturing facilities. This strategic move is intended to increase production capacity and meet the growing demand for its diverse range of value-added dairy products, including butter, cheese, paneer, curd, and UHT milk.

In addition to infrastructure investments, the IPO proceeds will also address the company’s working capital requirements. This is crucial for maintaining efficient operations, particularly in managing the procurement of raw materials and inventory for perishable goods. The IPO process is being managed by key book runners Edelweiss Financial Services and JM Financial.

Milky Mist's decision to go public is seen as a reflection of the increasing investor confidence in India's agribusiness sector, particularly in value-added dairy and packaged foods, which offer higher margins than traditional liquid milk sales. The upcoming listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is expected to provide the company with the necessary financial resources to support its growth strategy in the competitive dairy market.