Milky Mist converts to public company as it prepares for IPO

Milky Mist, the Erode-based dairy firm known for its direct farm-to-fork model and popular range of dairy products, has moved one step closer to its much-anticipated Rs 2,000 crore initial public offering (IPO).

The startup's board recently approved a resolution to convert itself from a private limited entity to a public company, renaming it from “Milky Mist Dairy Food Private Limited” to “Milky Mist Dairy Food Limited,” according to regulatory filings.

The move follows the induction of two independent directors — Radha Venkatakrishnan and Mallika S Janakiraman — onto the company’s board earlier this year. The board expansion and status change signal Milky Mist’s preparations for a public listing that is expected to take place by the end of 2025.

Milky Mist is expected to file its draft red herring prospectus (DRHP) by mid-2025. The proposed IPO will consist of both a fresh issue of shares and an offer for sale, with the company targeting a valuation of approximately Rs 20,000 crore, or $2.3 billion, according to media reports. JM Financial, IIFL Capital, and Axis Capital have been appointed as the lead managers for the issue.

What does Milky Mist do?

Founded by T. Sathish Kumar, a school dropout turned entrepreneur, Milky Mist began operations in 1985 as a milk trading business and pivoted to paneer production in 1994. Over the decades, it has expanded into more than 150 stock-keeping units (SKUs) across 20 dairy categories — including curd, butter, cheese, yogurt, and ice cream — and operates a fully integrated supply chain that ensures quality control from procurement to distribution.

Its products are available across South India, with growing ambitions to expand into the northern and western regions.

Financial growth

The company's financials show a steady revenue climb. It reported a 33% year-on-year increase in operating revenue to Rs 1,900 crore in FY24, up from Rs 1,437 crore in FY23 and Rs 1,015 crore in FY22. However, net profit slipped to Rs 19.46 crore in FY24 from Rs 28 crore the previous year.

For FY25, Milky Mist is projected to hit Rs 2,500 crore in revenue and close with a net profit of Rs 65 crore, according to projections cited by individuals close to the company.

The IPO comes amid a wave of Indian startups and consumer brands seeking public listings. Milky Mist joins the ranks of companies like boAt, Pine Labs, OfBusiness, and Shiprocket that have transitioned into public entities ahead of their respective IPOs.