Milky Mist Dairy Food Secures Rs 482 Crore Pre IPO Funding

Dairy products manufacturer Milky Mist Dairy Food has successfully secured approximately Rs 482 crore in a pre IPO funding round from Jongsong Investments Pte Ltd, which is an indirect fully owned subsidiary of Temasek Holdings, as per a public announcement. This funding round includes a primary capital injection of Rs 357 crore from Jongsong Investments along with a secondary share sale of Rs 125 crore by promoters Sathish Kumar T and Anitha S ahead of the company’s anticipated public listing.

In this primary issuance, Milky Mist allocated 5.43 lakh equity shares at a price of Rs 139.76 each, generating about Rs 7.6 crore. Additionally, the company issued 25 lakh compulsorily convertible preference shares at the same valuation, which brought in nearly Rs 349.4 crore. These shares will convert into equity on a one-to-one basis prior to the listing.

This milestone follows Milky Mist’s approval from the Securities and Exchange Board of India to proceed with its IPO six months ago. On the financial side, Milky Mist, based in Erode, reported a 29% increase in its revenue from operations, rising to Rs 2,349 crore in FY25 from Rs 1,822 crore in FY24. The company’s profit amplified by 2.4 times, reaching Rs 46 crore in FY25 compared to Rs 19 crore in the previous fiscal year.

Founded in Tamil Nadu, Milky Mist is committed to producing high-quality dairy products such as paneer, cheese, yogurt, ice cream, butter, and ghee. Notably, the company does not offer liquid milk, a strategy that fosters higher margins and positions the brand strongly in the FMCG market.

The proceeds from the IPO are slated for debt repayment, capacity expansion, and the modernisation of its Perundurai facility. Additionally, funds will be allocated for enhancing cold chain infrastructure and distribution networks.