Milky Mist Shares Hit 10% Upper Circuit For Second Straight Session

Milky Mist Dairy Food share price rose to ₹199.55 apiece on the NSE at 10:05 am on August 19, marking a 10% gain from the previous close. At that price, the company’s market capitalisation stood at ₹15,362.23 crore.

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The stock had closed at ₹181.50 on August 18, its first trading session, compared with the IPO issue price of ₹140. The debut represented a premium of 29.64% over the issue price.

IPO Drew 56.12 Times Subscription

Milky Mist Dairy Food’s ₹1,553 crore initial public offering received strong demand during the issue period. The offer was subscribed 56.12 times on the final day of bidding on Thursday.

The mainboard IPO was priced in a band of ₹133-140 per share. It comprised a fresh issue of shares worth up to ₹1,428 crore and an offer-for-sale component of up to ₹125 crore.

The issue was the largest IPO by an Indian dairy company. Its listed peers include Parag Milk Foods, Hatsun Agro Product and Dodla Dairy.

The sharp movement in the Milky Mist share price has taken the stock further above its ₹140 issue price in just two sessions.

IPO Proceeds To Fund Expansion

Milky Mist plans to use proceeds from the fresh issue to repay or prepay borrowings and expand and modernise its manufacturing facility at Perundurai in Tamil Nadu.

The company will also allocate funds towards strengthening its cold-chain infrastructure. Planned investments include facilities for whey protein concentrate, yoghurt and cream cheese, along with additional ice cream freezers and chocolate coolers.

A portion of the funds raised through the fresh issue will be used for general corporate purposes.

Company Focuses On Value-Added Dairy Products

Founded in Erode, Tamil Nadu, Milky Mist operates in the value-added dairy products segment. Its product portfolio includes paneer, cheese, curd, yoghurt, butter, ghee and ice cream.

The company does not operate in the liquid milk segment, instead focusing on processed and value-added dairy products.

With the second consecutive 10% upper circuit, the Milky Mist share price has continued to move higher following its listing. The stock’s latest market valuation reflects the gains recorded since its debut, while the company prepares to deploy the IPO proceeds towards debt reduction, manufacturing expansion and cold-chain development.