Milky Mist files DRHP with SEBI for IPO

Milky Mist on Monday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aiming to raise INR 2,035-crore.

As per the DRHP, the promoters currently hold 40.94% and 51.45% respectively of the company's pre-offer paid-up equity share capital.

Founded in Erode, Tamil Nadu, Milky Mist has carved a niche for itself by focusing exclusively on value-added dairy products such as paneer, cheese, yogurt, curd, ice cream, butter, and ghee. Notably, the company strategically avoids selling liquid milk, a model that enables higher margins and positions it akin to established FMCG players. Milky Mist directly engages with over 67,000 farmers to ensure a consistent supply of high-quality milk.

The net proceeds from the fresh issue are earmarked for several key strategic initiatives. Approximately INR 750-crore will be utilised for the repayment or prepayment of certain outstanding borrowings, aiming to strengthen the company's balance sheet. INR 414-crore will be allocated for the expansion and modernisation of its Perundurai manufacturing facility, indicating a push to enhance production capabilities. Additionally, INR 129-crore will be invested in the deployment of visi coolers, ice cream freezers, and chocolate coolers, vital for strengthening the company's cold chain logistics and market reach.

The company’s revenue from operations has increased by 30% to INR 2,039-crore in FY25, up from INR 1,394-crore in FY23.