Milky Mist Dairy Food Shares Jump Nearly 30% on Market Debut

Shares of Milky Mist Dairy Food surged nearly 30% on their first day of trading on Tuesday, reflecting strong investor interest in the value-added dairy segment and expectations of continued expansion by the company beyond its established southern India market.

The shares closed at Rs 181.50 on the NSE, compared with an issue price of Rs 140, giving the company a market capitalisation of around Rs 13,969 crore. The stock made its debut at Rs 165 on both the BSE and NSE, representing an 18% premium over the IPO price.

The company’s Rs 1,553-crore initial public offering received strong demand, with the issue subscribed 56.12 times. The IPO attracted investors amid growing interest in branded and value-added dairy products, including cheese, paneer, butter, ice cream and Greek yogurt.

Milky Mist is among India’s major manufacturers of value-added dairy products and has built a strong presence in categories such as yogurt and high-protein dairy products. Its brand strength and exposure to these faster-growing segments were among the factors that helped generate investor interest in the offering.

Ahead of the IPO, the company raised Rs 465 crore from anchor investors. The investors included Singapore's state investment firm Temasek, the International Finance Corporation (IFC) and HDFC Mutual Fund.

Milky Mist has set an annual revenue growth target of around 30%. The company plans to deploy part of the IPO proceeds towards debt repayment as well as the expansion and modernisation of its flagship manufacturing facility at Perundurai in Tamil Nadu.

The strong listing performance comes as India's dairy market continues to move beyond traditional milk consumption towards higher-value products. Rising demand for packaged cheese, yogurt, paneer and protein-rich dairy products is creating new growth opportunities for organised dairy companies.