Milky Mist Shares Hit 10% Upper Circuit For Second Day; Stock Gains Nearly 43% From IPO Price

Mumbai, August 19: Milky Mist Dairy Food shares continued their strong post-listing run on Wednesday, hitting the 10% upper circuit for the second consecutive trading session as investors continued to show strong appetite for the newly listed dairy stock. The shares rose to Rs 199.55 apiece on the NSE by 10:05 am, taking the company’s market capitalisation to Rs 15,362.23 crore. The stock had ended its debut session at Rs 181.50, nearly 30% above its issue price of Rs 140. 

Milky Mist Shares Rally After Listing 

Milky Mist shares were trading 10% higher at Rs 199.55 on August 19, extending the sharp gains seen since the company’s stock market debut a day earlier. At the day’s upper circuit price, the stock had gained around 42.5% over its IPO price of Rs 140. 

The shares made a strong debut on August 18, ending the session at Rs 181.50 on the NSE, representing a 29.64% premium over the issue price. The strong listing came after substantial demand for the company’s initial public offering, which had attracted bids across investor categories. 

The continued upper-circuit move indicates that buying interest has remained strong even after the stock’s sharp debut premium. The company’s market valuation had risen to more than Rs 15,300 crore by Wednesday morning. 

Milky Mist IPO Subscribed 56 Times 

Stock froze on its second day of trade. Source: NSE   

The strong performance in the secondary market follows an equally strong response to Milky Mist’s public issue. The company’s Rs 1,553-crore IPO was subscribed 56.12 times on the final day of bidding. 

The size and subscription levels of the issue had put Milky Mist firmly on investors’ radar even before its listing. Its subsequent premium debut and two consecutive upper-circuit sessions have further strengthened the stock’s early-market momentum. 

Where Will Milky Mist Use IPO Proceeds? 

Milky Mist plans to deploy the proceeds from the fresh issue towards a combination of debt reduction, capacity expansion and infrastructure development. 

A portion of the funds will be used for the repayment or prepayment of borrowings. The company also plans to expand and modernise its manufacturing facility at Perundurai in Tamil Nadu and strengthen its cold-chain infrastructure. 

Part of the proceeds will be allocated towards general corporate purposes. 

Milky Mist Focuses On Value-Added Dairy 

Founded in Erode, Tamil Nadu, Milky Mist operates primarily in the value-added dairy segment. 

Unlike several traditional dairy companies, Milky Mist does not operate in the liquid milk segment. Instead, its business is centred on processed and value-added dairy products, a segment where changing consumption patterns and demand for convenience foods have created opportunities for branded players. 

What Investors Will Watch Next 

With the stock already trading substantially above its IPO price, investors will now watch whether the sharp post-listing momentum can be sustained after the initial enthusiasm around the listing begins to cool. 

The company’s ability to execute its planned capacity expansion, reduce borrowings and scale its value-added dairy portfolio will be important factors for its longer-term performance. Meanwhile, the sharp rise in the share price has pushed the stock’s valuation higher, making future earnings growth and execution increasingly important for justifying the premium investors are currently assigning to the business. 

For now, Milky Mist remains one of the strongest recent IPO performers, with the stock having delivered a gain of more than 40% over its issue price within its first two trading sessions. The second consecutive 10% upper-circuit move underscores the strength of investor demand following its listing. 

Source

•  https://www.nseindia.com/get-quote/equity/MILKYMIST/Milky-Mist-Dairy-Food-Limited