Milky Mist files DRHP with Sebi to launch IPO; eyes to raise Rs 2035 crore

Milky Mist Dairy Food, a prominent player in India's packaged food sector, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). The company plans to raise Rs 2035 crore through an Initial Public Offering (IPO), comprising a fresh issue of up to Rs 1785 crore and an offer for sale of Rs 250 crore by promoters Sathishkumar T and Anitha S.

Founded in Erode, Tamil Nadu, Milky Mist specialises in premium value-added dairy products, such as paneer, cheese, yogurt, and ghee, distinguishing itself from traditional dairy companies by not selling liquid milk. This focus has allowed the company to maintain higher margins similar to Fast-Moving Consumer Goods (FMCG) companies.

With fully automated manufacturing and an in-house logistics network, Milky Mist ensures quality and efficiency, directly connecting with over 67,000 farmers for a steady milk supply. The net proceeds from the fresh issue are earmarked for several strategic uses, including Rs 750 crore for debt repayment, Rs 414 crore for expanding the Perundurai facility, Rs 129 crore for deploying visi coolers, and the remainder for general corporate purposes.

Milky Mist reported a revenue increase from Rs 1,394 crore in FY23 to Rs 2,349 crore in FY25, marking a 30% compound annual growth rate. Its Ebitda stood at Rs 310 crore with a 13.2% margin. New product launches have significantly contributed to its revenue, adding Rs 511 crore in FY25 alone.

The company commands premium pricing, with its paneer and curd products priced 10–25% higher than competitors. Approximately 75.4% of its FY25 revenue was derived from daily consumption products. Milky Mist operates one of the largest paneer production capacities in India, producing 150 metric tons daily.

Milky Mist is also committed to sustainability, utilising water reprocessing and renewable energy to meet 70–80% of its needs. The company's innovation extends to health-focused products, offering options that are high-protein, lactose-free, and low-sugar.

Through this IPO, Milky Mist aims to capitalise on the growing demand for premium dairy products, enhance its manufacturing capacity, reduce debt, and strengthen its leadership in the FMCG dairy sector. JM Financial Limited, Axis Capital Limited, and IIFL Capital Services Limited are serving as the Book Running Lead Managers for the issue.