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Milky Mist files DRHP for largest dairy IPO in India, raising ₹2,035 cr

Milky Mist Dairy Food (Milky Mist), one of India's fastest-growing packaged food companies, 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). This will be the largest IPO in the dairy space so far. The offer comprises a fresh issue of up to ₹1,785 crore and an offer for sale of up to ₹250 crore by promoter shareholders Sathishkumar T and Anitha S. Through the IPO, the company aims to capitalize on the rising demand for premium value-added dairy products, enhance manufacturing capacity, reduce debt, and reinforce its leadership in India's dairy FMCG segment. Founded in Erode, Tamil Nadu, Milky Mist has established itself as a leading dairy brand in India, exclusively focused on premium value-added dairy products (VADPs), including paneer, cheese, yogurt, curd, ice cream, butter, ghee, and packaged foods. Unlike traditional dairy companies, Milky Mist does not sell liquid milk, enabling higher margins and strong positioning akin to FMCG companies. With fully automated, tech-driven manufacturing facilities and an in-house logistics network for end-to-end distribution and control, Milky Mist ensures quality, efficiency, and real-time traceability. The company directly connects with over 67,000 farmers, securing a steady supply of high-quality milk. The net proceeds from the fresh issue of up to ₹1,785 crore will be utilized for repayment of certain outstanding borrowings of around ₹750 crore and ₹414 crore for the expansion and modernization of the Perundurai Manufacturing Facility (including installation of whey protein concentrate, yogurt, and cream cheese plants). Around ₹129 crore will be used for the deployment of visi coolers, ice cream freezers, and chocolate coolers, with the balance allocated towards general corporate purposes (up to 25 per cent of gross proceeds as per SEBI regulations). The company's revenue from operations grew from ₹1,394 crore in FY23 to ₹2,349 crore in FY25, reflecting a strong CAGR of nearly 30 per cent. Its EBITDA stood at ₹310 crore in FY25, with an EBITDA margin of 13.2 per cent. Milky Mist commands premium pricing, with paneer and curd products priced 10–25 per cent higher than leading brands. The company's new product launches contributed ₹511 crore to revenue in FY25 alone. About 75.4 per cent of FY25 revenue comes from daily consumption products like paneer, curd, yogurt, ghee, and butter. Milky Mist operates one of the largest paneer production capacities in India at 150 metric tons per day. JM Financial Limited, Axis Capital Limited, and IIFL Capital Services Limited are the Book Running Lead Managers to the Issue. "Milky Mist is committed to sustainability with water reprocessing plants, methane-to-energy conversion, solar and wind energy generation (70–80 per cent of current needs), and eco-friendly logistics. The company also emphasizes health-focused product innovation, offering high-protein, lactose-free, and low-sugar products to cater to evolving consumer preferences," it said in a statement.