Packaged food and dairy company Milky Mist Dairy Food Limited made a strong debut on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), listing at ₹165 per share. This marked a 17.8 per cent premium over its initial public offering (IPO) price of ₹140.
Shortly after opening, the stock climbed further, hitting the upper circuit on both exchanges. On the NSE, it rose to ₹181.50, registering nearly 30 per cent listing gains, while touching an upper circuit of ₹181.45 on the BSE.
The ₹1,553-crore IPO featured a price band of ₹133 to ₹140 per share and comprised a fresh issue of up to ₹1,428 crore alongside an offer-for-sale of up to ₹125 crore. Prior to the public issue, the company secured ₹465.30 crore from anchor investors and raised approximately ₹482 crore in a pre-IPO round in May from Jongsong Investments Pte Ltd, an indirect wholly-owned subsidiary of Temasek Holdings. At the upper end of the price band, the post-issue market valuation is estimated at around ₹10,778 crore.
Market analysts note that the company's strong financials underpin its valuation. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, pointed out that Milky Mist boasts a revenue CAGR of 33.6 per cent, expanding margins, a 32 per cent Return on Equity (RoE), and a leadership position in the value-added dairy segment. However, she also highlighted that the stock trades at roughly 85 times FY26 earnings, which is notably higher than the dairy sector average price-to-earnings of approximately 52.5x. Consequently, analysts have suggested caution, advising investors to avoid chasing the stock at current levels and consider holding with a stop-loss or waiting for meaningful dips.
The company plans to deploy the net proceeds from the fresh issue toward the repayment or prepayment of borrowings, the expansion and modernisation of its manufacturing facility in Perundurai, Tamil Nadu, and the strengthening of its cold-chain infrastructure. Additional funds will be allocated for setting up whey protein concentrate, yoghurt, and cream cheese plants, as well as installing ice cream freezers and chocolate coolers. Protein products have emerged as a key expansion engine for the firm.
JM Financial, Axis Capital, and IIFL Capital Services served as the book-running lead managers for the issue, with KFin Technologies acting as the registrar. Milky Mist joins listed sector peers such as Parag Milk Foods, Hatsun Agro Product, and Dodla Dairy on the public markets.
"The successful debut of Milky Mist Dairy Food Limited highlights strong market appetite for established players in the value-added dairy segment. While premium valuations reflect the company's robust growth metrics and market leadership, investors must carefully balance growth potential against sector pricing benchmarks. Long-term success for such large public listings will depend on efficient execution of expansion plans, particularly in emerging product categories like whey protein and specialized dairy lines." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
