365Telugu.com online news,India, July 22nd, 2025: Milky Mist Dairy Food Limited, one of India’s fastest-growing packaged food and dairy brands, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹2,035 crore through an Initial Public Offering (IPO).
The public issue comprises a fresh issue of shares worth ₹1,785 crore, along with an offer for sale (OFS) of ₹250 crore by promoter shareholders Sathishkumar T and Anitha S.
Company Overview
Founded in Erode, Tamil Nadu, Milky Mist has emerged as a leading dairy company focused exclusively on premium value-added dairy products (VADPs) such as paneer, cheese, curd, yogurt, ghee, butter, ice cream, and other packaged foods. Unlike traditional dairy firms, Milky Mist does not deal in liquid milk, helping it achieve higher margins and positioning it in line with FMCG-style businesses.
With a fully automated, tech-enabled manufacturing facility and an in-house end-to-end logistics network, the company guarantees quality control and real-time product traceability. It also maintains direct procurement relationships with over 67,000 farmers, ensuring a reliable supply of high-quality milk.
IPO Proceeds Utilization
The ₹1,785 crore raised from the fresh issue will be deployed as follows:
- ₹750 crore for repayment or prepayment of certain outstanding borrowings
- ₹414 crore for expansion and modernization of the Perundurai Manufacturing Facility, including new whey protein, yogurt, and cream cheese plants
- ₹129 crore for the installation of visi coolers, ice cream freezers, and chocolate coolers
- Remaining proceeds for general corporate purposes, as per SEBI guidelines (up to 25% of gross proceeds)
Strong Financial Performance
- Revenue grew from ₹1,394 crore in FY23 to ₹2,349 crore in FY25, reflecting a CAGR of nearly 30%
- FY25 EBITDA stood at ₹310 crore with an EBITDA margin of 13.2%
Key Business Highlights
- Commands premium pricing, with products like paneer and curd priced 10–25% higher than market leaders
- New product launches contributed ₹511 crore in FY25
- 75.4% of revenue in FY25 came from high-demand daily products such as paneer, curd, yogurt, ghee, and butter
- Operates one of India’s largest paneer manufacturing facilities with a capacity of 150 metric tons per day
ESG Commitment and Innovation
Milky Mist is actively investing in sustainability with initiatives such as:
- Water recycling, methane-to-energy conversion, and usage of solar and wind energy (covering 70–80% of current needs)
- Health-focused innovations including high-protein, lactose-free, and low-sugar product lines
IPO Objective
With this IPO, Milky Mist aims to capitalize on the growing demand for premium dairy products, reduce debt, expand manufacturing capacity, and further strengthen its position in India’s dairy-based FMCG landscape.
JM Financial Limited, Axis Capital Limited, and IIFL Capital Services Limited are acting as the Book Running Lead Managers (BRLMs) to the issue.