Milky Mist Plans ₹2,000 Cr IPO to Expand Nationwide
Milky Mist, a prominent dairy brand based in Erode, Tamil Nadu, is preparing for a ₹2,000 crore initial public offering (IPO) to support its expansion across India. The company has transitioned from a private limited to a public limited entity, now operating as Milky Mist Dairy Food Limited, and has appointed independent directors Radha Venkatakrishnan and Mallika S. Janakiraman to its board.
The IPO will consist of a combination of fresh equity issuance and an offer for sale by existing shareholders, aiming for a valuation of approximately ₹20,000 crore (around USD 2.3 billion). Investment banks JM Financial, IIFL Capital, and Axis Bank are expected to lead the offering.
Founded by T. Sathish Kumar, Milky Mist operates a direct farm-to-fork model, sourcing milk from over 70,000 farmers and offering more than 150 stock-keeping units (SKUs) across 20 product categories, including paneer, curd, ghee, and cheese. In the fiscal year ending March 2024, the company reported a 33% year-on-year revenue growth to ₹1,900 crore, though net profit declined to ₹19.46 crore from ₹28 crore the previous year.
The funds raised through the IPO will be utilized to enhance Milky Mist's presence beyond South India, targeting markets in Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, and Delhi-NCR.
Industry Insight:
Milky Mist's IPO initiative reflects the growing trend of regional dairy companies seeking capital to scale operations nationally. The company's direct procurement model and focus on value-added products position it well to compete in India's expanding dairy market.