Milky Mist Dairy Food hit the 10% upper circuit on its first day on the bourses after making a strong debut. The stock hit the upper circuit at Rs 181.50 per share on the NSE, up 30% from the issue price of Rs 140. Earlier in the day, shares of the Temasek-backed firm were listed at Rs 165, a 17.86% premium to its IPO price.
At the end of the day 1 trading session, Milky Mist commanded a market valuation of Rs 13,968.81 crore.
The strong buying interest came as the initial public offering (IPO) of the Tamil Nadu-based firm was subscribed 56.12 times on the last day of the share sale on Thursday.
“The company’s strong 33.6% revenue CAGR, expanding margins and 32% RoE, along with its leadership in the value-added dairy segment, support its premium positioning. Temasek-backed Jongsong Investments invested Rs 482 crore in the pre-IPO round at Rs 139.76 per share for a ~5.2% stake, providing additional validation to the company’s growth prospects and IPO valuation,” said Shivani Nyati Head of Wealth, Swastika Investmart.
Nyati added that at around 85x FY26 earnings, valuations remain significantly higher than the dairy sector average of 52.5x P/E.
“While the premium is supported by its FMCG-like margins and value-added product mix, the strong listing may lead to some profit-booking. Our view remains positive on the business, but investors should avoid chasing the stock at current levels. Hold with a stop-loss of ₹150 and consider adding on meaningful dips,” said Nyati.
The Rs 1,553-crore IPO had a price band of Rs 133-140 per share. The IPO had a fresh issue of shares worth up to Rs 1,428 crore and an offer-for-sale (OFS) of up to Rs 125 crore.
The mainboard issue is the largest IPO by an Indian dairy company. Listed peers in the sector include Parag Milk Foods Ltd, Hatsun Agro Product Ltd, and Dodla Dairy Ltd.
Proceeds from the fresh issue will be used for repayment or prepayment of borrowings, expansion and modernisation of the company's manufacturing facility at Perundurai in Tamil Nadu and strengthening its cold-chain infrastructure.
Founded in Erode, Milky Mist is focused on value-added dairy products such as paneer, cheese, curd, yoghurt, butter, ghee, and ice cream, among others. The company does not operate in the liquid milk segment.
Ravi Singh, Chief Research Officer from Master Capital Services said that given how richly the stock is priced compared to its dairy peers, it's probably better suited to growth-focused investors who don't mind paying up for premium, FMCG-style valuations. That said, some may prefer to wait for a dip before jumping in, rather than buying in right after listing,” added Singh.
