Milky Mist IPO Day 2: Issue fully subscribed on second day. Here's GMP, size, & other key details - Apply or not?

Milky Mist IPO, which opened on Tuesday, 11 August, has gained strong response from investors. The mainboard IPO will remain open for bidding till Thursday, 13 August.

Before opening, Milky Mist Dairy Food had raised ₹465.30 crore from anchor investors on Monday. The company allotted 3.32 crore equity shares to anchor investors at ₹140 per share, which is the upper end of its IPO price band, according to a circular available on the BSE website.

Milky Mist IPO subscription status

Milky Mist IPO was subscribed 1.15 times so far on the second day of bidding, with investors placing bids for shares against the 6,48,30,230 shares available in the issue.

The Retail Individual Investors (RIIs) segment witnessed comparatively stronger interest, with the portion subscribed 1.42 times against the 4.08 crore shares reserved for retail investors.

The Non-Institutional Investors (NIIs) category was subscribed 1.52 times, with bids received for the 1.74 crore shares earmarked for this segment.

In contrast, demand from Qualified Institutional Buyers (QIBs) remained subdued, with the institutional portion subscribed 40% against the 2.33 crore shares reserved for QIBs.

Milky Mist IPO GMP today

Milky Mist IPO GMP today stands at ₹22.50. Based on the upper end of the IPO price band and the prevailing grey market premium, the estimated listing price of Milky Mist Dairy Food shares is ₹162.50 apiece. This implies a potential premium of 16% over the IPO price of ₹140 per share.

Recent grey market trends over the past seven sessions indicate an upward movement in the IPO’s GMP, signalling positive expectations for the stock’s listing. During this period, the grey market premium ranged from ₹0 to ₹27, according to market experts.

Milky Mist IPO Review

Swastika Investmart said Milky Mist Dairy Food has recorded a strong 33.6% revenue CAGR, along with improving margins and a healthy 32% return on equity (RoE), driven by its strong position in the value-added dairy segment. The brokerage noted that the company is valued at nearly 85 times its FY26 post-IPO earnings, significantly above the dairy sector’s average P/E multiple of around 52.5 times. However, it believes the premium valuation is warranted given Milky Mist’s FMCG-like margins and focus on value-added dairy products, unlike traditional liquid milk players such as Hatsun and Heritage. Swastika also pointed to Temasek’s ₹482 crore pre-IPO investment through Jongsong Investments, calling it a strong validation of the company’s valuation and the upper price band of ₹140. The brokerage said aggressive investors may consider subscribing to the issue, while a better entry opportunity could emerge after listing as the company reduces leverage and improves earnings quality.

Sushil Financial Services Pvt. Ltd. has given the issue a ‘Subscribe’ rating, citing Milky Mist’s robust growth and improving profitability. According to the brokerage, revenue rose from ₹2,354.79 crore in FY25 to ₹3,145.01 crore in FY26, while profit after tax (PAT) nearly tripled to ₹127.01 crore from ₹46.07 crore. EBITDA margin also improved to 13.87% from 13.21%, while return on net worth (RoNW) increased significantly to 33.60% from 18.98%. The brokerage added that the IPO proceeds have been allocated across debt reduction, capacity expansion, and strengthening cold-chain and retail infrastructure, which should support the company’s continued distribution-driven growth.

Milky Mist IPO details

Milky Mist’s IPO will consist of a fresh issue of equity shares worth up to ₹1,428 crore and an offer for sale (OFS) of shares valued at up to ₹125 crore.

The issue is expected to be the largest IPO from an Indian dairy company. Its listed peers include Parag Milk Foods Ltd, Hatsun Agro Product Ltd and Dodla Dairy Ltd.

Previously, Milky Mist Dairy Food Ltd had proposed an IPO worth ₹2,035 crore, comprising a fresh issue of ₹1,785 crore and an OFS of ₹250 crore. Based on the upper end of the price band, the company is likely to have a post-issue valuation of approximately ₹10,778 crore.

The IPO comes after Milky Mist raised ₹482 crore in a pre-IPO placement in May from Jongsong Investments Pte Ltd, an indirect wholly owned subsidiary of Temasek Holdings. The transaction included a primary capital infusion of ₹357 crore and a secondary sale of shares worth ₹125 crore.

Proceeds from the fresh issue will be used to repay or prepay borrowings, expand and modernise the company’s manufacturing facility in Perundurai, Tamil Nadu, and enhance its cold-chain infrastructure. The funds will also be deployed towards establishing plants for whey protein concentrate, yogurt and cream cheese, as well as installing visi coolers, ice cream freezers and chocolate coolers. The remaining funds will be utilised for general corporate purposes.

JM Financial, Axis Capital and IIFL Capital Services are acting as the book-running lead managers for the issue, while KFin Technologies has been appointed as the registrar.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.