Dairy products maker Milky Mist Dairy Food Ltd has fixed the price band for its Rs 1,553-crore IPO at Rs 133-140 per share. The IPO will open for subscription on August 11 and close on August 13. The bidding for anchor investors will open for one day on August 10, the company said in a public announcement.
The IPO is set to be the largest public issue by an Indian dairy company. Its listed peers include Parag Milk Foods, Hatsun Agro Product and Dodla Dairy. It includes a fresh issue of shares worth up to Rs 1,428 crore and an Offer For Sale (OFS) of up to Rs 125 crore, taking the total issue size to Rs 1,553 crore.
Milky Mist had earlier planned to raise Rs 2,035 crore through its first public offering, according to its draft papers. At the fixed price band, the company is expected to have a post-issue market valuation of around Rs 10,310 crore to Rs 10,778 crore.
The IPO comes after Milky Mist raised Rs 482 crore in a pre-IPO funding round in May from Jongsong Investments Pte Ltd, an indirect wholly owned subsidiary of Temasek Holdings. The company will use the funds from the fresh issue to repay borrowings and expand and modernise its manufacturing facility in Perundurai. The expansion will include setting up plants for whey protein concentrate, yoghurt and cream cheese.
Milky Mist also plans to strengthen its cold-chain infrastructure by adding visi coolers, ice cream freezers and chocolate coolers. A part of the funds will also be used for general corporate purposes.
Founded in Erode, Tamil Nadu, Milky Mist is one of India’s leading premium dairy brands, with a focus on value-added dairy products. Its portfolio includes paneer, cheese, curd, yoghurt, butter, ghee and ice cream. The company does not operate in the liquid milk segment.
Of the total IPO, 50% has been reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors. The company’s shares are proposed to be listed on the BSE and NSE on August 18. JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers for the issue, while KFin Technologies is the registrar.
