Milky Mist Dairy Food Shares Make Strong Debut With Nearly 18% Premium

New Delhi witnessed the impressive listing of packaged food company Milky Mist Dairy Food Ltd on Tuesday, with its shares debuting at a near 18 percent premium over the issue price of Rs 140. The company's shares opened at Rs 165, marking an 18.85 percent surge past the issue price on both the BSE and NSE. The stock continued its upward trajectory, jumping 29.60 percent to Rs 181.45 on the BSE.

The IPO of Milky Mist Dairy Food Ltd was met with significant demand, being subscribed 56.12 times on the final day of the share sale on Thursday. The IPO raised Rs 1,553 crore, with a price band of Rs 133-140 per share. The fresh issue and offer-for-sale (OFS) totaled up to Rs 1,428 crore and up to Rs 125 crore, respectively.

Milky Mist's IPO is the largest by an Indian dairy company. The mainboard listing joins peers like Parag Milk Foods Ltd, Hatsun Agro Product Ltd, and Dodla Dairy Ltd. The company, founded in Erode, Tamil Nadu, specializes in value-added dairy products like paneer, cheese, curd, yoghurt, butter, ghee, and ice cream.

Proceeds from the fresh issue will be allocated towards repaying or prepaying borrowings, expanding and modernizing the manufacturing facility in Perundurai, Tamil Nadu, and bolstering the company's cold-chain infrastructure. The company plans to establish whey protein concentrate, yoghurt, and cream cheese plants, along with ice cream freezers and chocolate coolers. A portion of the funds will also be utilized for general corporate purposes.