Milky Mist’s Journey Towards a Rs 2,000 Crore Initial Public Offering

Milky Mist is progressing towards its Rs 2,000 crore initial public offering as it has taken significant steps to become a public company. This change occurs following the recent addition of two independent directors, Radha Venkatakrishnan and Mallika S Janakiraman, as exclusively reported by Startup Superb in April.

Transition to Public Company

The board of Milky Mist has adopted a special resolution to alter its status from a private company to a public one. The company will be rebranded from “Milky Mist Dairy Food Private Limited” to “Milky Mist Dairy Food Limited,” according to its regulatory filing.

IPO Details and Valuation

As per media reports, Milky Mist plans to launch a Rs 2,000 crore IPO, which will feature a mix of fresh shares and an offer for sale. This IPO is anticipated to value the company at approximately $2.3 billion. Lead managers for the IPO are expected to include JM Financial, IIFL Capital, and Axis Bank.

Company Overview

Founded by T. Sathish Kumar, Milky Mist utilises a direct farm-to-fork model, procuring milk straight from farmers. The company produces over 150 stock-keeping units (SKUs) across 20 different categories, such as curd, paneer, ghee, and cheese. Milky Mist also facilitates online purchases of its products and manages the entire supply chain to uphold quality, with a distribution network primarily concentrated in South India.

Financial Performance

For the fiscal year ending March 2024, Milky Mist reported a remarkable 33% year-on-year revenue growth, achieving Rs 1,900 crore. Despite this growth, the company’s profit fell to Rs 19.46 crore in FY24, down from Rs 28 crore in the prior fiscal year.

Joining the Ranks of Public Companies

Milky Mist is now part of a growing group of companies like boAt, Pine Labs, OfBusiness, Shiprocket, and Shadowfax, which are transitioning to public entities in anticipation of their own initial public offerings in the near future or by 2025.