Source: Milky Mist

Erode, Tamil Nadu – India’s popular dairy brand Milky Mist has moved a step closer to its long-awaited ₹2,000 crore initial public offer (IPO) as the Company had passed a resolution to change its status from a private limited company to a public limited company. Consequently, the company has changed its name from Milky Mist Dairy Food Private Limited to Milky Mist Dairy Food Limited, according to a regulatory filing.

This all comes after the company appointed two independent directors, Radha Venkatakrishnan and Mallika S. Janakiraman, to the company’s board. Independent directors are a critical aspect for companies seeking to go public and are an important governance feature.

According to media reports, Milky Mist plans to collect about ₹2,000 crore through its IPO, which will involve a mixture of fresh shares along with the existing shares offered for sale by shareholders. The company is expected to be valued at around ₹20,000 crore (approximately USD 2.3 billion).  Milky Mist has enlisted the raising of ₹2000 crore via its IPO plans and is expected to appoint investment banks JM Financial, IIFL Capital, and Axis Bank to play the role of lead managers to this IPO.

All about Milky Mist 

Milky Mist was started by T. Sathish Kumar  at Erode, Tamil Nadu, in the form of a milk supplier to begin with, later took the shape of a major dairy brand with multiple products.

The company works on a Direct Farm To Fork model, in which it collects milk straight from the farmers and manufactures value-added dairy products therefrom. 

Milky Mist caters to more than 150 stock-keeping units (SKUs), comprising over twenty product categories viz., paneer, curd, ghee, cheese, etc. The company strives to run the entire dairy supply chain, to have complete control over the quality of their products, and dairy products are mainly marketed only in South India, but it is also available online through their e-commerce platform.

Financial Performance

Milky Mist has had a good financial year for the year ending March 2024 with reported sales reported strong growth. The company’s revenues increased 33% YoY to ₹1,900 crore last year. However, its net profit decreased slightly to ₹19.46 crore from ₹28 crore the prior year.

Going Forward

Milky Mist will now join Indian companies like boAt, Pine Labs, OfBusiness, Shiprocket, and Shadowfax in becoming publicly traded as these companies head towards IPOs in 2025,

Milky Mist will be a business to follow in the coming months given its strong presence in South India, reputation of its brand, and strong supply chain business model.