The initial public offering (IPO) of Milky Mist Dairy Food was fully subscribed on the second day of bidding on Wednesday, amid a rise in its grey market premium (GMP).
The Rs 1,553-crore public issue received bids for 9.55 crore shares, compared with the 8.18 crore shares on offer, according to NSE data as of 11:15 am. The retail and Non-Institutional Investor (NII) categories were oversubscribed, while the portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 40%.
Milky Mist Dairy Food IPO GMP
Ahead of debut, the unlisted shares of Milky Mist Dairy Food were trading at Rs 164 apiece in the grey market, according to sites tracking the unofficial market. This implies more than 17% grey market premium (GMP) over the IPO price.
The GMP has increased from the 16% quoted on Day 1, and nearly 15% quoted a day before. However, it is important to note that the grey market is an unofficial market, and the actual listing price may differ significantly.
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About Milky Mist Dairy Food IPO
Milky Mist Dairy Food launched its IPO to raise funds through a fresh issue of 10.20 crore shares worth Rs 1,428 crore and an Offer for Sale (OFS) of 0.89 crore shares valued at Rs 125 crore.
Under the OFS component, promoter shareholders Sathishkumar T. and Anitha S. will sell shares worth Rs 75 crore and Rs 50 crore, respectively. The OFS will provide the promoters with an opportunity to partially reduce their holdings, while the bulk of the IPO proceeds will come from the fresh issue.
A day before the IPO opened for public bidding, Milky Mist Dairy Food raised Rs 465 crore from anchor investors by allotting 3.32 crore equity shares to 19 investors at the upper price band of Rs 140 per share.
The IPO will remain open for subscription from August 11 to August 13. The basis of allotment is expected to be finalised on August 14, while the shares are scheduled to list on both the NSE and BSE on August 18, subject to the final timetable.
The issue has a price band of Rs 133–140 per share and a lot size of 107 shares. At the upper end of the price band, retail investors will need a minimum investment of Rs 14,980 to bid for one lot.
Should you apply for Milky Mist Dairy Food IPO?
Anand Rathi believes that Milky Mist Dairy Food is valued at an implied P/E multiple of 84.9x based on FY2026 earnings at the upper end of the IPO price band. The brokerage noted that the company’s strong revenue growth, leadership across key value-added dairy categories and premium positioning could support a valuation premium. However, it also highlighted that the IPO appears fully valued at the upper price band.
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Given the company’s growth prospects and positioning, Anand Rathi has assigned a “Subscribe – Long Term” rating to the IPO, suggesting that investors may consider the issue from a longer-term perspective rather than focusing solely on potential listing gains.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
