Milky Mist, a household name associated with dairy products, is preparing for a significant IPO of INR 2,000 crore. Heavyweights Axis Capital, IIFL Capital Services, and JM Financial have joined Milky Mist as merchant bankers. In order to list by the end of 2025, the issue filing is anticipated by the middle of the year.
From Local Beginnings to National Recognition
Founded back in 1985 by T. Sathish Kumar, Milky Mist started with humble roots in the dairy sector. Initially focusing on paneer production in 1994, the company has since broadened its offerings to include curd, butter, cheese, yogurt, ice cream, and more. Led by Kumar, alongside his wife Anitha Sathish Kumar and CEO K. Rathnam—a former leader at Amul Dairy—Milky Mist has become a household name.
Financial Growth Driving IPO Ambitions
The company’s financial performance paints a picture of steady growth:
- FY23 Revenue hit INR 1,437 crore, up 42% from INR 1,015 crore in FY22.
- Projections for FY24 suggest revenue of around INR 1,900 crore with an EBITDA margin of 14%.
- By FY25, Milky Mist expects to see revenue soar to INR 2,500 crore, a 25% jump from the previous year, with net profit climbing to INR 65 crore from INR 28 crore in FY23.
Milky Mist IPO – The Big Picture
Aiming to raise INR 2,000 crore, Milky Mist is eyeing a valuation of INR 20,000 crore, a significant uptick from its 2023 valuation. Milky Mist IPO will likely combine new share issuance with an offer for sale, though the exact mix is still under wraps.
Milky Mist has never shied away from investing in cutting-edge technology, from automation to logistics. The company’s product range, where over 60% are daily essentials, helps buffer against market volatility:
- New premium offerings like Greek yogurt and dessert chocolates.
- fully automated paneer plant in Erode.
- An in-house logistics system enhancing supply chain efficiency.
Use of the Issue Proceeds
- Debt Reduction: To fortify the balance sheet.
- Expansion: Boosting manufacturing capabilities and distribution networks across India.
Additional Insights
- IPO Timing: Strategically planned for late 2025 to capitalize on market conditions.
- Essential Products: Daily essentials continue to drive steady demand.
- Technology: Automation plays a crucial role in maintaining quality and cost efficiency.
Looking Ahead
The company plans to push deeper into northern and western India, going head-to-head with established players like Amul, Hatsun Agro, Heritage Foods, and Dodla Dairy. CEO K. Rathnam focuses on sustainable growth rather than just chasing high valuations.
As Milky Mist gears up for its market debut, the excitement among investors and industry observers is palpable. With a strong track record in innovation and financial health, 2025 could indeed be a transformative year for Milky Mist.
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