Milky Mist eyes ₹2,035-crore IPO by July-end

Milky Mist Dairy Food Ltd. is gearing up to launch its ₹2035 crore initial public offering (IPO) as early as July, according to people familiar with the matter, paving the way for what is expected to be India’s largest dairy-sector IPO.

The Tamil Nadu-based company has completed investor roadshows and is aiming to open the share sale at the end of the month or in early August, the people said, asking not to be identified because the information is private.

A representative for Milky Mist declined to comment on the timeline.

The IPO comes at a time when local dairy stocks have lagged the broader market. Parag Milk Foods Ltd. has fallen 20% this year, while Dodla Dairy Ltd. has declined about 11%. Hatsun Agro Product Ltd. has slipped 7.5% since the start of the year.

The proposed offering comprises a fresh issue of shares worth as much as ₹1785 crore and an offer for sale of up to ₹250 crore by founders, according to the draft prospectus. The company may raise as much as ₹357 crore via a pre-IPO placement, which would reduce the size of the fresh issue, the filing showed.

Milky Mist plans to use the proceeds to expand its manufacturing capacity and repay debt, according to the filing.

JM Financial Ltd., Axis Capital Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the offering.

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