Dairy product maker Milky Mist Dairy Food Ltd is expected to launch its initial public offering (IPO) in the first week of August, people familiar with the development said.
The proposed public issue is likely to be the largest IPO by an Indian dairy company. Listed peers in the sector include Parag Milk Foods Ltd, Hatsun Agro Product Ltd and Dodla Dairy Ltd.
The company’s public market debut comes after it raised Rs 482 crore in a pre-IPO funding round in May this year from Jongsong Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek Holdings.
Based on the pre-IPO investment price of Rs 139.76 per share, Milky Mist was valued at around Rs 9,300 crore.
Following the pre-IPO round, the company now seeks to raise Rs 1,553 crore through its IPO, which comprises a fresh issue of shares along with an offer for sale (OFS) by promoters, people familiar with the development said.
Earlier, Milky Mist planned to mobilise Rs 2,035 crore through its maiden public offering, according to the draft papers.
Proceeds from the fresh issue will be used to repay borrowings and fund the expansion and modernisation of its manufacturing facility at Perundurai, including setting up whey protein concentrate, yogurt and cream cheese plants.
The company also plans to expand its cold-chain infrastructure by deploying visi coolers, ice cream freezers and chocolate coolers, besides meeting general corporate purposes.
Founded in Erode, Tamil Nadu, Milky Mist is among India’s leading premium dairy brands focused exclusively on value-added dairy products. Its portfolio includes paneer, cheese, curd, yoghurt, butter, ghee, ice cream and other dairy-based products. The company does not operate in the liquid milk segment.
JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers to the issue.
