Tamil Nadu's Milky Mist files DRHP with SEBI to raise Rs 2,035 crore through IPO

Milky Mist Dairy Food, one of India’s fastest-growing packaged food companies, has filed DRHP with the Securities and Exchange Board of India (SEBI) to raise up to Rs 2,035 crore through an initial public offering (IPO), as it eyes a broader push into India’s evolving fast-moving consumer goods (FMCG) dairy space.

The proposed IPO comprises a fresh issue of Rs 1,785 crore and an offer for sale (OFS) of Rs 250 crore by promoter shareholders Sathishkumar T and Anitha S. Proceeds from the issue are intended to support a multipronged growth strategy, including debt reduction, capacity expansion, and distribution enhancement.

Founded in Erode, Tamil Nadu, Milky Mist focuses on value-added dairy products (VADPs) like paneer, curd, cheese, yogurt, butter, ice cream, and ghee. This strategic positioning has enabled the company to operate with healthier margins and brand itself more akin to an FMCG player than a traditional dairy processor.

Milky Mist’s revenue surged from Rs 1,394 crore in FY23 to Rs 2,349 crore in FY25, translating to a compound annual growth rate nearing 30%. EBITDA for FY25 stood at Rs 310 crore, yielding a margin of 13.2%, among the highest in the sector.

According to its draft red herring prospectus, Rs 750 crore from the IPO proceeds will be allocated toward debt repayment. Another Rs 414 crore is earmarked for expanding and modernizing its Perundurai manufacturing facility, including the installation of new lines for whey protein concentrate, yogurt, and cream cheese. An additional Rs 129 crore is set aside to deploy visi coolers, ice cream freezers, and chocolate coolers across its distribution footprint.

Milky Mist operates one of India’s largest paneer production units, with a daily capacity of 150 metric tons. A fully automated processing infrastructure and proprietary logistics system underscore its commitment to quality and operational efficiency. The company connects directly with over 67,000 farmers, ensuring traceability and a consistent supply of high-quality milk. 

The company has also integrated sustainability into its operations. Roughly 70 to 80% of its energy needs are met through solar and wind power. It operates water reprocessing systems and methane-to-energy units, and is investing in health-conscious products such as high-protein, lactose-free, and low-sugar dairy offerings.

JM Financial, Axis Capital, and IIFL Capital Services are acting as the book-running lead managers to the issue.