Milky Mist Food Diary shares made a strong debut on the Indian stock market on Tuesday, August 18, with the stock listing at Rs 165 per share on both the NSE and BSE. The listing price represented a 17.86% premium over the IPO price of Rs 140. The company’s Rs 1,553-crore initial public offering (IPO) received strong investor demand during its three-day subscription period from August 11 to August 13, with the issue subscribed 56.12 times overall.
How Did Milky Mist Food Diary Shares Perform On Listing Day?
Milky Mist shares opened at Rs 165 on both the NSE and BSE, compared with the IPO price of Rs 140. This translated into a listing gain of Rs 25 per share, or 17.86%, for IPO allottees. The debut was slightly better than grey market expectations. The IPO’s grey market premium (GMP) had indicated an estimated listing price of around Rs 159.70, suggesting a premium of approximately 14% over the issue price. Following the listing, the company’s market capitalisation stood at around Rs 12,702.42 crore.
How Much Was The Milky Mist IPO Subscribed?
The Milky Mist IPO was subscribed 56.12 times overall during its August 11-13 bidding period. The category-wise subscription was:
•   Retail investors: 8.40 times
•   Non-institutional investors (NII): 34.91 times
•   Qualified institutional buyers (QIBs): 155.83 times
The company had earlier raised Rs 465.30 crore from anchor investors.
Should You Buy, Sell Or Hold Milky Mist Shares?
Market experts have expressed a positive view of Milky Mist’s longer-term prospects while offering a more cautious outlook for short-term investors. Mahesh M. Ojha, Vice President, Research & Business Development at Kantilal Chhaganlal Securities, said the company’s focus on premium value added dairy products such as paneer and curd could support pricing and margins. He said short-term investors could consider booking partial listing gains, while medium- to long-term investors could hold.
Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, highlighted Milky Mist’s integrated farm-to-retail model, direct milk procurement, pan-India distribution network and growing focus on premium, higher-margin dairy products.
What Does Milky Mist Food Diary Do?
Founded in Erode, Tamil Nadu, Milky Mist focuses on value-added dairy products, including paneer, cheese, curd, yoghurt, butter, ghee and ice cream. The company does not operate in the liquid milk segment. Milky Mist reported a revenue CAGR of 31.3% between FY24 and FY26, driven by growth in value-added dairy products.
Where Will Milky Mist Use The IPO Proceeds?
The company plans to use the IPO proceeds to expand its manufacturing capabilities. The planned investments include setting up facilities for whey protein concentrate, yoghurt and cream cheese, along with installing ice cream freezers and chocolate coolers. A portion of the funds will also be used for general corporate purposes.
Milky Mist is the largest IPO by an Indian dairy company. Its listed peers include Parag Milk Foods, Hatsun Agro Product and Dodla Dairy.
Disclaimer: The views and investment opinions expressed by market experts are their own. Investors should consult certified financial advisers and conduct their own research before making investment decisions.
