MILKY MIST SHARES MAKE DECENT MARKET DEBUT AT 18% PREMIUM

Milky Mist Dairy Food made a strong debut on the stock exchanges today, with its shares listing at an 18 percent premium over the IPO price. The shares opened at Rs 165 on the NSE, representing a 17.86 percent premium to the issue price, which was priced in the Rs 133-140 range, received an overwhelming response from investors and was subscribed 56.12 times during the August 11-13 bidding period. The listing was slightly better than grey market expectations, which had indicated a potential listing gain of around 14 percent. Analysts remain positive on Milky Mist’s long-term prospects, citing its growing focus on premium, value-added dairy products such as paneer and curd. The shift towards higher-margin products is expected to support pricing power and improve profitability over the longer term. The company’s integrated farm-to-retail business model, direct milk procurement, pan-India distribution network of 4,001 distributors and more than 3.75 lakh retail touchpoints provide a strong foundation for growth. Its increasing emphasis on premium dairy products also gives the business characteristics of a FMCG company. Milky Mist plans to use IPO proceeds to establish manufacturing facilities for whey protein concentrate, yoghurt and cream cheese. The company will also deploy funds to install ice cream freezers and chocolate coolers, while a portion of the proceeds will be allocated towards general corporate purposes. Founded in Erode, Tamil Nadu, Milky Mist specialises in value-added dairy products, including paneer, cheese, curd, yoghurt, butter, ghee and ice cream. Unlike several traditional dairy companies, it does not operate in the liquid milk segment.