Milky Mist moves towards IPO with Rs 2,035 Cr DRHP filing

Dairy company Milky Mist has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India to raise up to Rs 2,035 crore (approximately $239 million) through an initial public offering (IPO) with the fresh issue of shares up to Rs 1,785 crore and offer for sale up to Rs 250 crore.

According to the DRHP, as part of the OFS, the promoter Sathishkumar T will offload his shares worth Rs 150 crore ($17.6 million) while Anitha S will sell shares worth Rs 100 crore ($11.7 million).

The development comes just days after Milky Mist began planning to raise Rs 357 crore in a pre-IPO round, a move exclusively reported by Entrackr.

As per the DRHP, Anitha S is the largest shareholder with a 51.45% stake in Milky Mist, followed by T. Sathishkumar who owns 40.94%. Aquarius Family Private Trust and Taurus Family Private Trust hold 2.5% each in the company. JM Financial, Axis Capital, and IIFL Securities are the book-running lead managers for the IPO.

Founded in 1997, Milky Mist has built a strong presence in South India with its paneer, cheese, curd, yogurt, and ghee portfolio. The company plans to use the proceeds from the IPO to repay or prepay outstanding borrowings (Rs 750 crore), upgrade and expand its manufacturing facility in Perundurai, Tamil Nadu (Rs 414 crore), and deploy over Rs 129 crore towards refrigeration equipment, including freezers and coolers. The remaining funds will go towards general corporate purposes.

Milky Mist sources directly from a network of over 67,000 farmers. The company claims it can process around 12.5 lakh litres of milk daily and produces approximately 26,280 metric tonnes of paneer annually, as per the prospectus.

Milky Mist has seen rapid growth over the past few years. In FY25, its revenue crossed Rs 2,349 crore from Rs 1,822 crore in FY24 and Rs 1,394 crore in FY23. Its net profit also jumped to Rs 46 crore in FY25 from Rs 19.4 crore a year ago. As per the DRHP, 71% of the revenue comes from South India and 62% of the revenue is from the sale of paneer, cheese and curd.