Milky Mist Dairy Food Files Rs 2,035 Crore IPO to Expand Operations, Reduce Debt
Milky Mist Dairy Food, a prominent player in India's dairy sector, has filed a DRHP with SEBI to raise up to Rs 2,035 crore through an IPO. The company plans to use the proceeds for debt reduction, capacity expansion, and distribution enhancement.
The IPO comprises a fresh issue of Rs 1,785 crore and an OFS of Rs 250 crore by promoter shareholders. Axis Capital and Kotak Mahindra Capital are the bookrunners for the IPO. Milky Mist's EBITDA for FY25 stood at Rs 310 crore, yielding a margin of 13.2%, one of the highest in the sector. The company's revenue surged from Rs 1,394 crore in FY23 to Rs 2,349 crore in FY25, with a CAGR nearing 30%.
Milky Mist specializes in value-added dairy products (VADPs) like paneer, curd, cheese, yogurt, butter, ice cream, and ghee. It operates one of India's largest paneer production units, with a daily capacity of 150 metric tons. To further expand and modernize its operations, the company has set aside Rs 414 crore for its Perundurai manufacturing facility. Additionally, Rs 129 crore is allocated to deploy visi coolers, ice cream freezers, and chocolate coolers across its distribution network.
Rs 750 crore from the IPO proceeds will be used toward debt repayment, with the remaining funds allocated for capacity expansion and distribution enhancement. Milky Mist's robust financial performance and high EBITDA margin suggest a promising future for the company and its investors.
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