Milky Mist gets Sebi nod for ₹2,035 crore IPO, largest in dairy sector

The Tamil Nadu-based dairy brand plans to use IPO proceeds for debt repayment, expansion of its Perundurai plant, and strengthening its premium FMCG portfolio

Milky Mist Dairy Food, one of India’s fastest-growing packaged food companies, has received final observations from Securities and Exchange Board of India (Sebi) to raise up to ₹2,035 crore through an initial public offering (IPO). This will be the largest IPO in the dairy space so far.

 

The offer comprises a fresh issue of up to ₹1,785 crore and an offer for sale of up to ₹250 crore by promoter shareholders, Sathishkumar T and Anitha S.

 

Founded in Erode, Tamil Nadu, Milky Mist has established itself as a leading dairy brand in India, exclusively focused on premium value-added dairy products (VADPs), including paneer, cheese, yogurt, curd, ice cream, butter, ghee, and packaged foods. Unlike traditional dairy companies, it does not sell liquid milk, enabling higher margins and strong positioning akin to FMCG companies.

 

 

With fully automated, tech-driven manufacturing facilities and an in-house logistics network of end-to-end distribution & control, the company ensures quality, efficiency, and real-time traceability. The company directly connects with over 67,000 farmers, securing a steady supply of high-quality milk.

 

Milky Mist Dairy is set to utilise the net proceeds of up to ₹1,785 crore from its fresh issue towards key strategic priorities — ₹750 crore will go towards repayment or prepayment of certain outstanding borrowings, ₹414 crore will be used for expansion and modernisation of the Perundurai manufacturing facility, including installation of whey protein concentrate, yogurt, and cream cheese plants, and ₹129 crore will be deployed for visi coolers, ice cream freezers, and chocolate coolers, with the balance earmarked for general corporate purposes (up to 25 per cent of gross proceeds as per Sebi regulations). 

 

Through this IPO, Milky Mist aims to capitalise on the rising demand for premium, value-added dairy products, expand its manufacturing capabilities, reduce debt, and strengthen its leadership in India’s dairy FMCG sector.

 

The company has showcased robust financial growth, with revenue from operations increasing from ₹1,394 crore in FY23 to ₹2,349 crore in FY25, reflecting a strong compound annual growth rate of nearly 30 per cent, while earnings before interest, taxes, depreciation, and amortisation stood at ₹310 crore in FY25 with a healthy margin of 13.2 per cent.

 

Milky Mist commands premium pricing, with paneer and curd products priced 10–25 per cent higher than leading brands, supported by strong brand equity and consistent quality. Its new product launches contributed ₹511 crore to FY25 revenues, while 75.4 per cent of revenue came from daily consumption products like paneer, curd, yogurt, ghee, and butter. The company also operates one of the largest paneer production capacities in India at 150 metric tonnes per day.

 

JM Financial, Axis Capital, and IIFL Capital Services are the Book Running Lead Managers to the issue.