Milky Mist Dairy Food, the Tamil Nadu-based dairy company, filed draft papers with Sebi on July 21 seeking approval to raise up to ₹2,035 crore through an initial public offering.
The offer includes a fresh equity issue of ₹1,785 crore and an offer for sale (OFS) worth ₹250 crore by the promoters. JM Financial, Axis Capital, and IIFL Capital Services are managing the issue.
As per the draft, ₹750 crore from the fresh issue is intended for repaying outstanding debt. Another ₹414 crore is likely to be invested in upgrading its Perundurai manufacturing plant—adding facilities to produce whey protein concentrate, cream cheese, and yoghurt.
Milky Mist is also looking to spend ₹129 crore on visi coolers, ice cream freezers, and chocolate coolers to strengthen its cold chain infrastructure. The rest of the proceeds are marked for general corporate use.
Milky Mist operates with a distinct model which does not sell liquid milk. This puts the company in a different lane from most traditional dairy players and helps it function more like a fast-moving consumer goods (FMCG) business. Its products include paneer, cheese, curd, butter, ghee, desserts, and ice creams.
The company reported a revenue of ₹2,349 crore and an EBITDA of ₹310 crore for FY25. Its operations are fully automated, and distribution is handled through its in-house logistics setup.
While Milky Mist has been expanding steadily across South India, Kerala is one market that poses a tougher test. The state’s dairy sector is dominated by Milma, a long-established cooperative brand with deep grassroots reach.
Milky Mist, however, has been making inroads into the Kerala market by focusing on packaged paneer and cheese segments, where Milma's presence is relatively limited. Its pricing and product range have found a growing customer base, particularly in urban retail chains and foodservice outlets.
