Milky Mist Dairy Food shares make a decent market debut; stock lists at 18% premium of NSE, BSE

Shares of Milky Mist Dairy Food made a strong stock market debut on Tuesday as the packaged food player was listed a Rs 165 apiece, a premium of 17.86 per cent over its issue price of Rs 140 on both BSE Ltd and NSE. According to the listing price, investors made a profit of Rs 2,625 on each lot of 107 shares alloted to them.

Listing of Milky Mist Dairy Foods has been slightly above the expectations. Ahead of its debut, Milky Mist shares were commanding a premium of Rs 19-20 per share, suggesting a listing pop of 14 per cent for the investors. Its GMP stood around Rs 18 since the issue close for bidding.

The IPO of Milky Mist Dairy Food ran for subscription between August 11 and August 13. It had offered its shares in the price band of Rs 133-140 per share with a lot size of 107 shares. The company eyed to raise a total of Rs 1,553 crore via IPO, which included a fresh share sale of Rs 1,428 and an offer-for-sale (OFS) of up to 89,28,570 equity shares worth Rs 125 crore.

The issue was overall booked a solid 56.12 times with nearly 28.60 lakh applications, fetching bids for almost Rs 64,200 crore. The portion for qualified-institutional bidders (QIBs) was subscribed a solid 155.83times. The quotas for non-institutional investors (NIIs), retail bidders and employees were booked 34.91 times, 8.41 times and 12.43 times, respectively.

Incorporated in July 2014, Erode-based Milky Mist Dairy Food is one of India's fastest-growing packaged food companies focused on premium value-added dairy products. It manufactures and markets a diversified portfolio including cheese, paneer, butter, curd, ghee, yogurt, ice cream, UHT products, frozen foods, ready-to-eat, ready-to-cook foods, and chocolates under various brands.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it. JM Financial Ltd, Axis Capital and IIFL Capital Services were the book-running lead managers of Milky Mist IPO, and Kfin Technologies Ltd served as the registrar.