Packaged food company Milky Mist Dairy Food Ltd on Monday raised Rs 465.30 crore from anchor investors, a day before the opening of its initial public offering (IPO) for public subscription.
The company has finalised the allocation of 3.32 crore equity shares to anchor investors at Rs 140 apiece, the upper end of the IPO price band, according to a circular uploaded on the BSE website.
Zulia Investments Pte Ltd received the largest allocation of 1.14 crore shares, accounting for 34.39 per cent of the anchor investor portion. The allocation is worth about Rs 160 crore.
Other major anchor investors included Nippon India Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Public Sector Pension Investment Board-IIFL Asset Management, India Acorn Fund and International Finance Corporation (IFC).
Of the total anchor allocation, 1.54 crore shares, or 46.27 per cent, were allotted to nine domestic mutual funds through 13 schemes.
The Rs 1,553-crore IPO will open for subscription on August 11 and close on August 13. The price band has been fixed at Rs 133-140 per share.
The issue comprises a fresh share sale of up to Rs 1,428 crore and an offer for sale (OFS) of up to Rs 125 crore.
The proposed issue is set to be 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.
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Earlier, Milky Mist had planned to raise Rs 2,035 crore through its IPO, comprising a fresh issue of Rs 1,785 crore and an OFS of Rs 250 crore.
At the upper end of the price band, the company is expected to command a post-issue market valuation of about Rs 10,778 crore.
The IPO comes after Milky Mist raised about Rs 482 crore in a pre-IPO round in May from Jongsong Investments Pte Ltd, an indirect wholly owned subsidiary of Temasek Holdings. The transaction comprised a primary capital infusion of Rs 357 crore and a secondary share sale of Rs 125 crore.
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.
The company plans to deploy funds towards setting up whey protein concentrate, yogurt and cream cheese plants, besides installing visi coolers, ice cream freezers and chocolate coolers. A portion of the proceeds will also be used for general corporate purposes.
Founded in Erode, Tamil Nadu, Milky Mist is focused on value-added dairy products such as paneer, cheese, curd, yogurt, butter, ghee and ice cream, among others. The company does not operate in the liquid milk segment.
The equity shares are proposed to be listed on the BSE and NSE on August 18.
JM Financial, Axis Capital and IIFL Capital Services are the book-running lead managers to the issue, while KFin Technologies is the registrar.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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