Milky Mist prepares to launch Rs 2,035 crore IPO as early as July-end

Milky Mist Dairy Food is preparing to launch a Rs 2,035 crore IPO by July-end or early August, with proceeds earmarked for capacity expansion and debt repayment

Milky Mist Dairy Food Ltd is preparing to launch its Rs 2,035 crore initial public offering (IPO) as early as this month, according to people familiar with the matter, paving the way for what is expected to be India's largest dairy-sector IPO.

 

The Tamil Nadu-based company has completed investor roadshows and is aiming to open the share sale by the end of July or in early August, the people said, requesting anonymity because the information is private.

 

A representative for Milky Mist declined to comment on the timeline.

 

The IPO comes at a time when listed dairy companies have underperformed the broader market. Parag Milk Foods Ltd has fallen 20 per cent this year, while Dodla Dairy Ltd has declined about 11 per cent. Hatsun Agro Product Ltd has slipped 7.5 per cent since the start of the year.

 

 

The proposed offering comprises a fresh issue of shares worth up to Rs 1,785 crore and an offer for sale of up to Rs 250 crore by the founders, according to the draft red herring prospectus (DRHP).

 

The company may also raise up to Rs 357 crore through a pre-IPO placement, which would reduce the size of the fresh issue, the filing showed.

 

Milky Mist plans to use the proceeds from the fresh issue to expand its manufacturing capacity and repay debt, according to the filing.

 

JM Financial Ltd, Axis Capital Ltd and IIFL Capital Services Ltd are the book-running lead managers for the offering.