Milky Mist Files DRHP for ₹2,035 Crore IPO for Expansion and Debt Reduction

Milky Mist Dairy Food, a rising name in India’s dairy space, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO) worth ₹2,035 crore. The proposed offer includes a fresh issue of ₹1,785 crore and an offer-for-sale of ₹250 crore by promoters Sathishkumar T and Anitha S. With this IPO, the Tamil Nadu-based company aims to reduce debt, scale up manufacturing, and strengthen its distribution capabilities.

Strategic Capital Deployment for Growth

A significant portion of the IPO proceeds will go towards operational and financial enhancement. Approximately ₹750 crore will be used to repay or prepay outstanding borrowings, while ₹414 crore is allocated for the expansion and modernisation of the company’s Perundurai plant. 

This facility will see new capacities for whey protein concentrate, yogurt, and cream cheese. A further ₹129 crore is earmarked for deploying visi coolers, ice cream freezers, and chocolate coolers to enhance retail presence. The remaining funds are reserved for general corporate purposes in compliance with SEBI regulations.

Distinct Business Model and Financial Strength

Milky Mist stands apart in the dairy industry by exclusively producing premium value-added dairy products such as paneer, cheese, curd, ghee, butter, yogurt, and ice cream, deliberately avoiding the liquid milk segment. This strategic choice allows for higher margins and a stronger positioning. 

Its paneer production capacity is among the largest in India at 150 metric tons per day. With a CAGR of nearly 30%, revenue jumped from ₹1,394 crore in FY23 to ₹2,349 crore in FY25. The company’s EBITDA for FY25 stood at ₹310 crore with a margin of 13.2%, supported by premium pricing of its offerings.

JM Financial, Axis Capital, and IIFL Capital Services are the book-running lead managers for this public issue.

Tech-Driven Operations and ESG Focus

Milky Mist’s operations are fully automated and supported by a tech-enabled logistics system. It connects with over 67,000 farmers to ensure consistent milk quality and traceability. 

On the sustainability front, the company has implemented water recycling systems, renewable energy adoption (70–80% from solar and wind), and methane conversion into power. Its health-oriented product portfolio includes lactose-free, high-protein, and low-sugar dairy variants.

Also Read: IPO Fundraising Jumps 45% to ₹45,350 Crore Defying Global Headwinds!

Conclusion

Milky Mist’s ₹2,035 crore IPO is a strategic move to fuel its next growth phase while reinforcing its debt-free and premium positioning. JM Financial, Axis Capital, and IIFL Capital Services are the book-running lead managers for this public issue.

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