SEBI has approved Milky Mist Dairy Food Ltd’s ₹2,035 crore Initial Public Offering. The company, located in Tamil Nadu, is one of the leading value-added dairy brands in India. This move sets the stage for the rapidly growing dairy company to enter its next phase of growth and technological improvement.
The public issue includes a new share issue worth ₹1,785 crore and an Offer for Sale of ₹250 crore from the company’s promoters, T. Sathishkumar and Anitha S. The shares will be listed on BSE and NSE, creating opportunities for both retail and institutional participation in one of the fastest-growing dairy success stories.
Strategic Use of Funds for Growth: Milky Mist
Much of the money raised from the IPO will be used to strengthen the company’s finances and boost production capacity. Milky Mist plans to allocate ₹750 crore to pay off or prepay outstanding loans, improving its balance sheet. An additional ₹414.7 crore will go toward upgrading and adding to the modern manufacturing facility in Perundurai, Erode district. This move will increase production of value-added dairy products such as whey protein concentrate, yogurt, and cream cheese, which are gaining popularity in India.
Another ₹129.4 crore will be invested in improving the company’s cold-chain distribution network by purchasing visicoolers, freezers, and chocolate coolers. The remaining funds will be reserved for general corporate needs, ensuring operational flexibility.
Innovation-Driven Business Model
With a vision to modernize India’s dairy industry, Mist is focused on building a stronger presence in value-added dairy products like paneer, ghee, cheese, curd, butter, and desserts instead of liquid milk. This strategy not only secures better margins but also positions Milky Mist within the FMCG segment.
Currently, the company sources fresh milk directly from over 67,000 farmers. This practice ensures transparency from farm to factory and supports rural dairy communities. Its automated production lines and strict quality control have helped maintain strong consumer trust throughout South India and beyond.
Milky Mist also operates India’s largest paneer manufacturing facility, which can produce nearly 150 tonnes per day.
Milky Mist markets its products under well-known sub-brands like Capella, SmartChef, and Misty Lite. It has recently introduced regional brands such as Asal and Briyas to its lineup.
Strong Financial Performance Boosts Investor Confidence
In recent years, Milky Mist has demonstrated impressive revenue growth. The company’s revenue reached ₹1,394 crore in FY23 and rose to ₹2,349 crore in FY25, showcasing strong growth through CAGR. Revenue increased due to new product launches, pushing sales to ₹511 crore in FY25. The main segments, paneer and curd, account for over 75% of the total business.
Bright Prospects for India’s Dairy Market
Indian consumers increasingly seek hygienic, packaged, and protein-rich dairy products. Milky Mist is well-positioned to capitalize on this market shift. The proposed IPO will accelerate expansion, upgrade technology, and strengthen national distribution. SEBI’s approval will help Milky Mist Dairy attract significant investor interest in its IPO, supporting its aim of becoming one of the most innovative and trusted dairy brands in India
