Milky Mist, one of India’s fastest-growing dairy brands, is set to raise INR 357 crore (~USD 42 million) in a pre-IPO funding round, according to a recent filing with the Registrar of Companies (RoC). The company’s board has given the green light for the issuance of fresh equity shares ahead of its highly anticipated public offering.
The names of the investors participating in this pre-IPO round have not been disclosed. However, the filing confirms that this capital raise is part of a broader plan, with the company also approving a primary issuance worth INR 1,785 crore (INR 210 million) as part of the IPO, potentially taking the total issue size to over INR 2,000 crore (USD 235 million) when including the Offer for Sale (OFS) component.
Milky Mist IPO on the Horizon with Top Bankers Onboard
Milky Mist has appointed JM Financial, IIFL Capital Services (formerly IIFL Securities), and Axis Capital as lead managers for its upcoming IPO, which is slated for launch towards the end of 2025. Some reports indicate that the draft red herring prospectus (DRHP) is likely to be filed by Q2 FY26.
The IPO is expected to value Milky Mist at approximately INR 20,000 crore (~USD 2.3 billion), marking a significant leap from its INR 6,000 crore valuation in 2023 when it was in talks with private investors, including venture capital firms like WestBridge. These negotiations ultimately fell through, prompting the company to pursue the public route.
Strong Financial Growth with Expanding Reach
Milky Mist’s financial trajectory underscores its growth momentum. The company reported INR 1,900 crore in revenue for FY24, representing a 33% year-on-year growth. However, profit for the same year declined to INR 19.46 crore, down from INR 28 crore in FY23.
Looking ahead, sources estimate that the company will close FY25 with INR 2,500 crore in revenue, a 25% increase from the previous year, and a projected net profit of INR 65 crore.
The company’s earlier financials also reveal rapid growth:
- FY23 revenue: INR 1,437 crore
- FY22 revenue: INR 1,015 crore
- FY23 profit: INR 28 crore (down 13% YoY)
This growth trajectory places Milky Mist at an estimated revenue multiple of 8x for its targeted IPO valuation.
ESOP Pool and Market Expansion
As part of Milky Mist pre-IPO corporate actions, the board has also approved the creation of a new employee stock option plan titled ‘Milky Mist Dairy Food – ESOP Scheme 2025’, comprising 1 crore equity shares at a face value of INR 2 each. The plan includes a minimum vesting period of one year, aimed at rewarding key talent and strengthening employee retention ahead of the public listing.
In terms of operations, Milky Mist has maintained a stronghold in South India but now plans strategic expansions into North and West India, positioning itself as a serious challenger to long-time market leader Amul.
From Humble Beginnings to Dairy Powerhouse
Founded by T. Sathish Kumar, Milky Mist began in 1985 as a milk trading company and transitioned into processing paneer in 1994. Today, it operates on a farm-to-fork model, sourcing milk directly from farmers and offering over 150 SKUs across 20 categories, including curd, ghee, yoghurt, cheese, and ice cream.
Headquartered in Erode, Tamil Nadu, the company is managed by Sathish Kumar, his wife Anitha Sathish Kumar, and CEO K. Rathnam, a seasoned industry veteran who previously served as Managing Director at Amul Dairy.
Conclusion
The planned IPO not only reflects Milky Mist’s ambitions for aggressive expansion but also signals a new era in India’s dairy sector. With increasing consumer demand for value-added dairy products and an expanding online footprint, Milky Mist is poised to leverage the capital markets to fund its growth, enhance visibility, and take on legacy brands at a national scale.
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