Milky Mist IPO to open on August 11
Milky Mist Dairy Food Ltd has announced an IPO with a price band of ₹133-140 per share, aiming to raise ₹1,553 crore. The funds will be used to reduce debt and expand the company's cold-chain infrastructure.
Why it matters
This IPO highlights the growth of the Indian dairy sector and the increasing interest of institutional investors like Temasek in regional food processing companies.
Dairy products maker Milky Mist Dairy Food Ltd on Thursday fixed a price band of ₹133-140 per share for its ₹1,553 crore initial public offering (IPO), which will open for subscription on August 11.
The Erode-based company’s IPO comprises a fresh issue of equity shares aggregating up to ₹1,428 crore and an Offer For Sale (OFS) of up to ₹125 crore, taking the total issue size to ₹1,553 crore.
K. Rathnam, Chief Executive Officer of Milky Mist, told The Hindu on Thursday that part of the funds to be raised from the IPO would go towards closing its debts and the rest would be used for investments.
Singapore sovereign fund Temasek invested ₹482 crore in the 27-year old company in May this year, taking a 5 % stake.
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