Erode-based Milky Mist Dairy Food Limited is set to make a maiden foray into the capital market with an initial public offering of Rs 2035 crore. The decks have been cleared for the IPO, with the Securities and Exchange Board of India (SEBI) making a final observation, according to a release from the company. The offer comprises a fresh issue of up to Rs 1785 crore and an offer for sale of up to Rs 250 crore by promoter shareholders Sathishkumar T and Anitha S. Milky Mist is focused on premium value-added dairy products (VADPs). The net proceeds of up to Rs 1785 crore from its fresh issue will be utilised for key strategic priorities like: Rs 750 crore towards repayment or prepayment of certain outstanding borrowings, Rs 414 crore for expansion and modernisation of the Perundurai manufacturing facility, including installation of whey protein concentrate, yoghurt and cream cheese plants, and Rs 129 crore for visi coolers, ice cream freezers and chocolate coolers. The balance will be earmarked for general corporate purposes (up to 25 per cent of gross proceeds as per SEBI regulations). The revenue from operations of the company has increased from Rs 1394 crore in FY23 to Rs 2349 crore in FY25, a strong CAGR of nearly 30 per cent. EBITDA stood at Rs 310 crore in FY25 with a margin of 13.2 per cent. New product launches have contributed Rs 511 crore to FY25 revenues, while 75.4 per cent of revenue came from daily consumption products like paneer, curd, yoghurt, ghee and butter. The company also operates one of the largest paneer production capacities in India at 150 metric tonnes per day.
