Paneer to ice-cream maker Milky Mist has picked JM Financial, IIFL Capital Services (formerly known as IIFL Securities) and Axis Capital as bankers for its initial public offering (IPO) slated for later this year, sources aware of the developments told Moneycontrol.
“The IPO work is already underway. Expect Milky Mist to file draft papers by mid of this year and then list on the stock exchanges towards the end of 2025,” a person with knowledge of the matter said.
Moneycontrol was first to report about Milky Mist opting to tap the public markets, instead of negotiating a private market fundraise, for additional capital to fund its expansion plans, back in July 2024.
“Milky Mist is aiming to raise around Rs 2,000 crore (around $235 million) through its IPO – the breakup between primary capital and the offer for sale (OFS) component will be decided over the coming weeks,” a second source aware of the developments said. “The company is aiming for a valuation close to Rs 20,000 crore (around $2.3 billion), but the final number will be decided depending on the market forces,” the person added.
Milky Mist, JM Financial, IIFL Securities and Axis Capital did not reply to Moneycontrol’s queries.
The company’s valuation of around Rs 20,000 crore, which is about 4X higher than Rs 6,000 crore which Milky Mist was commanding in 2023 while negotiating with venture capital firms, translates to a revenue multiple of around 8X.
Milky Mist is on track to end FY25 with Rs 2,500 crore in revenues, a 25 percent increase from a topline of Rs 2,000 crore in FY24, the sources cited above said. The company is expected to close the year with a net profit of around Rs 65 crore.
In FY23, Milky Mist clocked a revenue of Rs 1,437 crore, a 42 percent jump from Rs 1,015 crore in FY22. Milky Mist also reported a profit of Rs 28 crore in FY23, a fall of 13 percent from the previous year, data from Tracxn, a private markets data provider, showed.
Started as a milk trading company in 1985, Milky Mist took off when it started producing paneer (cottage cheese) in 1994, expanding over the years to value-added products such as curd, butter, cheese, yogurt and ice cream, tapping into an upwardly mobile consumer base in India.
Its founder T Sathish Kumar's journey from school dropout to building a formidable dairy brand is now the stuff of entrepreneurial legend.
Based in Tamil Nadu’s Erode, Milky Mist is run by Kumar, his wife Anitha Sathish Kumar and chief executive officer (CEO) K Rathnam, who was previously the managing director at Amul Dairy.
With an expanding product portfolio, Milky Mist will now further grow presence into the north, west and other regions, giving Amul, a dominant player in the space, a run for its money. A public market listing will also help boost its presence and visibility as it looks to tap newer markets.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
