Milky Mist Appoints Independent Directors for Upcoming IPO

Milky Mist, an Indian dairy firm, has secured the appointment of two independent directors to satisfy the independence requirements outlined by the Companies Act. This step is essential as the company prepares to submit its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).

New Appointments at Milky Mist

The board of Milky Mist has added Radha Venkatakrishnan and Mallika S Janakiraman as additional directors, serving in the role of independent directors, as indicated in their regulatory filing accessed via the Registrar of Companies (RoC).

IPO Plans and Financial Goals

As reported by various media outlets, Milky Mist is aiming to raise Rs 2,000 crore through its initial public offering (IPO). This capital will come from a combination of new issues and offers for sale, with the company expected to achieve a valuation of approximately $2.3 billion. The lead managers for this offering are likely to include JM Financial, IIFL Capital, and Axis Bank.

Business Model and Production Capacity

Founded by T. Sathish Kumar, Milky Mist operates under a direct farm-to-fork model, sourcing milk directly from farmers and processing it at their facility. The company specializes in value-added dairy products such as paneer, cheese, and curd, catering to modern trade, quick commerce, and the HoReCa segments. Milky Mist claims to process 1.5 million litres of milk daily at its fully automated 75-acre facility located in Perundurai, Tamil Nadu.

Recent Financial Performance

For the fiscal year ending in March 2024, Milky Mist reported a remarkable 33% year-on-year increase in revenue, reaching Rs 1,900 crore. However, profits experienced a decline, falling to Rs 19.46 crore in FY24, down from Rs 28 crore in FY23.

Industry Trends

In recent times, numerous companies including Zepto, Physics Wallah, and Shadowfax have also appointed independent directors to adhere to the regulatory guidelines set forth by SEBI in anticipation of their forthcoming public offerings.