Milky Mist Dairy Food has fixed its IPO price band at Rs. 133- Rs. 140 per share. The Rs. 1,553 crore listing opens on August 11 and closes on August 13. Anchor investors can place bids on August 10 before the public issue opens. The dairy company will use part of the money to reduce debt and expand its business. Milky Mist shares are expected to list on BSE and NSE on August 18.
The company reduced the IPO size from the earlier Rs. 2,035 crore plan. Milky Mist raised Rs. 357 crore through a pre-IPO round before the public issue. The current offer includes fresh shares worth Rs. 1,428 crore and an offer-for-sale worth Rs. 125 crore.
The IPO’s lot size is 107 shares. Retail investors will get at least 35% of the issue. Non-institutional investors will receive at least 15%, while QIBs can get up to 50%.
Milky Mist plans to use Rs. 496.8 crore from the IPO listing to repay or reduce loans. The company will spend another Rs. 469.2 crore on its Perundurai plant in Tamil Nadu. Around Rs. 155.3 crore will go toward coolers and freezers for its distribution network.
Milky Mist reported a 176% rise in profit for the financial year ended March 31. Revenue from operations also increased 34% during the year. CEO K. Rathnam expects annual revenue growth of around 30%.
“India is a protein-deficient country,” Rathnam said while discussing the company’s growth plans
The company expects its wider product range and growing distribution network to support future growth. Milky Mist products currently reach more than 375,000 retail outlets across India.
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