Dairy company Milky Mist gets SEBI nod for Rs 2,035 crore IPO

Milky Mist Dairy Food Ltd, the Tamil Nadu–based packaged dairy products maker, has received approval from the Securities and Exchange Board of India (SEBI) to raise Rs 2,035 crore through an initial public offering (IPO).

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The issue, comprising a fresh issue of up to Rs 1,785 crore and an offer for sale (OFS) of up to Rs 250 crore by promoters T Sathishkumar and Anitha S, will help the company fund its next phase of growth, reduce debt, and strengthen its position in the premium dairy FMCG space.

According to its draft red herring prospectus (DRHP), Milky Mist plans to deploy Rs 750 crore from the proceeds toward repayment or prepayment of borrowings, Rs 414.7 crore for expanding and modernising its Perundurai manufacturing facility, including setting up new whey protein concentrate, yogurt, and cream cheese plants, and Rs 129.4 crore for visi coolers, freezers, and chocolate coolers. The remainder will go toward general corporate purposes.

Founded in Erode, Milky Mist has built its business exclusively around value-added dairy products such as paneer, cheese, curd, yogurt, butter, ghee, and ice cream, steering clear of liquid milk to maintain higher margins comparable to those of FMCG companies.

The company operates fully automated, tech-driven facilities and sources milk directly from over 67,000 farmers. Its paneer and curd are priced 10–25 percent higher than competing brands.

Milky Mist reported revenue of Rs 2,349 crore in FY25, up from Rs 1,394 crore in FY23, marking a compound annual growth rate of nearly 30%. New products contributed Rs 511 crore to FY25 revenue, while core categories, paneer, curd, yogurt, ghee, and butter, accounted for 75.4%. The company operates one of India’s largest paneer plants, with a capacity of 150 tonnes per day.

Milky Mist markets its products under its flagship brand as well as sub-brands such as Capella, SmartChef, and Misty Lite. It recently acquired Asal and Briyas to broaden its portfolio. The company also runs a frozen-foods unit in Bengaluru.

JM Financial, Axis Capital, and IIFL Capital are the book-running lead managers to the issue, with KFin Technologies serving as registrar. The shares will be listed on the BSE and NSE, with 50% of the net offer reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.