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Milky Mist Food Diary shares jump 10% on strong IPO debut
The IPO priced at ₹140 per share raised ₹1,553 crore, and the company plans to use proceeds partly for debt repayment and capex at its Perundurai manufacturing facility.
Milky Mist Dairy Food share price hit the 10% upper circuit in early Tuesday trading after its debut on Indian exchanges, a strong first move that followed an IPO listing at a premium. The stock listed at ₹165 per share on both NSE and BSE, implying a 17.8% premium versus the IPO price of ₹140 and placing listing gains for IPO allottees at over 18%, LiveMint Markets reported. The listing also outpaced market expectations, with GMP cited at ₹19.7, corresponding to an estimated listing level of ₹159.7. The IPO was sized at ₹1,553 crore and included a fresh issue of 10.20 crore shares worth ₹1,428 crore plus an offer for sale of 89 lakh shares worth ₹125 crore. The public offering, open from August 11 to August 13, was subscribed 56.12 times overall, including 8.41 times for retail investors and 155.83 times for qualified institutional buyers, LiveMint Markets said.
Milky Mist Dairy Food intends to use the proceeds mainly to improve its financial position and support expansion plans. Out of estimated net proceeds of ₹1,121.41 crore, ₹496.86 crore is earmarked for repayment or prepayment of borrowings, and ₹469.24 crore will go toward capital expenditure to expand and modernise its manufacturing facility in Perundurai.