Milky Mist files DRHP for Rs 2,035crore IPO

CHENNAI: Milky Mist Dairy Food Limited has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise up to Rs 2,035 crore.

The offer comprises a fresh issue of up to Rs 1,785 crore and an offer for sale of up to Rs 250 crore by promoter shareholders Sathishkumar T and Anitha S.

Out of the fresh issue of up to Rs 1,785 crore net proceeds, the company plans to use Rs 750 crore for repayment/ prepayment of debt, Rs 414 crore for expansion and modernisation of its manufacturing facility in Perundurai, including installation of whey protein concentrate, yogurt, and cream cheese plants.

Milky Mist operates one of the largest paneer production capacities in India with a capacity of 150 metric tons per day. It plans to use Rs 129 crore for deployment of coolers, ice cream freezers and chocolate coolers and the rest towards general corporate purposes.

Founded in Erode, Tamil Nadu, Milky Mist focused on premium value-added dairy products (VADPs), including paneer, cheese, yogurt, curd, ice cream, and packaged foods. Through the IPO, the company aims to capitalise on the rising demand for premium value-added dairy products, enhance its manufacturing capacity and reduce debt.

Milky Mist revenue from operations stood at Rs 2,349 crore in 2025 financial year, with the south Indian market accounting for 71% of its revenue. Its profit stood at Rs 46 crore, up from Rs 19 crore last year. Its EBITA margin stood at 13.2% in FY25.

The company’s new product launches contributed Rs 511 crore to revenue in FY25 alone. About 75.4% of revenue comes from daily consumption products like paneer, curd, yogurt, ghee and butter.

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


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