Milky Mist Dairy Food IPO Subscribed 2.17 Times on Day 2

New Delhi: The initial share sale of packaged food company Milky Mist Dairy Food Ltd was subscribed 2.17 times on the second day of bidding on Wednesday.

The Rs 1,553-crore IPO received bids for 17,77,82,747 shares against 8,17,98,244 shares on offer, according to details available with the NSE.

The non-institutional investors bid for 3.56 times the shares reserved for them. The retail quota was subscribed 2.44 times and Qualified Institutional Buyers (QIBs) booked their category 65 per cent.

Milky Mist Dairy Food Ltd on Monday raised Rs 465.30 crore from anchor investors.

The initial public offering (IPO) will close on August 13. The price band has been fixed at Rs 133-140 per share.

The IPO comprises a fresh issue of shares worth up to Rs 1,428 crore and an Offer-for-Sale (OFS) of up to Rs 125 crore.

The issue is the largest IPO by an Indian dairy company. Listed peers in the sector include Parag Milk Foods Ltd, Hatsun Agro Product Ltd and Dodla Dairy Ltd.

At the upper end of the price band, the company is expected to command a post-issue market valuation of about Rs 10,778 crore.

The IPO comes after Milky Mist raised about Rs 482 crore in a pre-IPO round in May from Jongsong Investments Pte Ltd, an indirect wholly-owned subsidiary of Temasek Holdings. The transaction comprised a primary capital infusion of Rs 357 crore and a secondary share sale of Rs 125 crore.

Proceeds from the fresh issue will be used for repayment or prepayment of borrowings, expansion and modernisation of the company’s manufacturing facility at Perundurai in Tamil Nadu and strengthening its cold-chain infrastructure.

The company plans to deploy funds towards setting up whey protein concentrate, yoghurt and cream cheese plants, besides installing ice cream freezers and chocolate coolers. A portion of the proceeds will also be used for general corporate purposes.

Founded in Erode, Tamil Nadu, Milky Mist is focused on value-added dairy products such as paneer, cheese, curd, yoghurt, butter, ghee and ice cream, among others. The company does not operate in the liquid milk segment.

The equity shares are proposed to be listed on the BSE and NSE on August 18.

JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers to the issue, while KFin Technologies is the registrar.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)