Now Reading: Milky Mist IPO opens; eyes West and North India without fresh debt
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Milky Mist IPO opens; eyes West and North India without fresh debt
Milky Mist IPO opens; eyes West and North India without fresh debt
Milky Mist Dairy Food's Rs 1,553-crore IPO opened on August 11 at Rs 133-140 per share. The company raised Rs 465 crore from anchor investors. It plans to use Rs 500 crore…
The Story in Brief
Milky Mist Dairy Food's Rs 1,553-crore IPO opened on August 11 at Rs 133-140 per share. The company raised Rs 465 crore from anchor investors. It plans to use Rs 500 crore of the proceeds to repay debt and expand into West and North India, including a new Maharashtra facility, without fresh debt. The company's net debt stood at Rs 1,671 crore. It has already repaid Rs 300 crore from a pre-IPO placement. CEO Dr K Rathnam said the company targets Tier 1,2,3 cities and aims to grow its consumer base from 1 crore to 5-10 crore. The grey market premium (GMP) is Rs 20.5, implying a 14.6% listing premium. The issue closes on August 13.
The Indian Opinion
Milky Mist's narrative that it is a packaged food company rather than a dairy firm, used to justify an 85x PE ratio, is debatable. Its net debt of Rs 1,671 crore and reliance on value-added dairy products still tie it to the sector. The claim of expansion without fresh debt is ambitious. Investors should watch for the timeline of the Maharashtra plant and whether the company can maintain 30% growth while reducing leverage.
Sources (2): thehindu.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
