Milky Mist IPO fully subscribed on day 2, led by NIIs; GMP at 17%

The initial public offering (IPO) of Milky Mist Dairy Food Ltd was fully subscribed as it received 1.52 times the subscription on the second day of the share sale on Wednesday.

 

The company's IPO garnered bids for 12,41,78,850 shares against 8,17,98,244 shares on offer, as per BSE data.

 

The category for qualified institutional buyers (QIBs) fetched 0.40 times subscription, while the quota for non-institutional investors received 2.36 times subscription. The retail investors' portion was subscribed 1.79 times.

 

Milky Mist Dairy Food’s IPO opened for subscription on August 11 (Tuesday). The initial share sale will conclude on August 13 (Thursday). 

 

 

The company has fixed a price band of ₹133-140 per share for its ₹1,553 crore public offer. At the price band, the company is expected to command a post-issue market valuation of about ₹10,310 crore to ₹10,778 crore.

 

Milky Mist IPO comprises a fresh issue of equity shares aggregating up to ₹1,428 crore and an Offer For Sale (OFS) of up to ₹125 crore, taking the total issue size to ₹1,553 crore.

 

Milky Mist IPO GMP was ₹24 earlier today, suggesting an estimated listing price of ₹164, a premium of 17.14 per cent over the upper end of the price band of ₹140. Shares of the company are slated to list on both BSE and NSE on August 17.

 

JM Financial Ltd. is the book-running lead manager and Kfin Technologies Ltd. is the registrar of the issue.

 

Brokerages have shared a constructive view on the Milky Mist IPO and recommended a 'Subscribe' rating. 

 

Notably, Milky Mist raised ₹465 crore from 19 anchor investors a day before its initial public offering on August 10. Milky Mist has allotted 33.2 million equity shares to 19 anchor investors and raised approximately ₹465.29 crore ahead of the company’s proposed IPO at the upper price band of ₹140 per equity share (including a share premium of ₹138 per equity share).

 

Out of the total allocation to the anchor investors, 15.7 million equity shares were allocated to nine domestic mutual funds applying through 13 schemes.

   

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