- Milky Mist Food Ltd listed at Rs 165, 17.86% above IPO upper price band
- IPO was oversubscribed 56.12 times by final day of bidding on Aug 13
- QIBs subscribed 155.83 times, NIIs 34.91 times, retail investors 8.41 times
Milky Mist Food Ltd. made a strong market debut on Tuesday and listed at Rs 165 on NSE and BSE, a 17.86% premium to the upper band of the issue price of Rs 140.
The initial public offering (IPO) of Milky Mist Dairy Food Ltd. was oversubscribed 56.12 times by the third and final day of bidding on Aug. 13.
Qualified Institutional Buyers (QIBs) booked the issue 155.83 times. The Non-Institutional Investors (NIIs) category was subscribed 34.91 times, while retail investors booked their quota 8.41 times.
The Milky Mist Dairy Food IPO comprised of a fresh issue of 10.2 crore equity shares worth Rs 1,428 crore and an Offer for Sale (OFS) of 89.28 lakh equity shares worth Rs 125 crore.
The company aimed to raise Rs 1,553 crore. Its price band was fixed at Rs 133–Rs 140 per share. The minimum bid size for retail investors was 107 shares, requiring an investment of Rs 14,980 at the upper end of the price band.
JM Financial Ltd. was the book-running lead manager and KFin Technologies Ltd. was the registrar to the issue. The share allotment status was finalised on Aug. 14.
Milky Mist Dairy Food IPO: Use Of Proceeds
The company plans to utilise the net proceeds from the fresh issue primarily towards repayment or pre-payment of certain borrowings availed by the company (Rs 496.86 crore), funding capital expenditure for manufacturing facility expansion (Rs 469.24 crore), deployment of coolers and freezers (Rs 155.31 crore), and General corporate purposes.
DAM Capital's Bullish Stance
Milky Mist bagged a 'buy' call from DAM Capital upon coverage initiation ahead of its market debut on Tuesday. The brokerage has begun its coverage on a bullish note with a price target of Rs 175, implying a 25% upside.
DAM Capital places a creamy bet on Milky Mist's 100% value added dairy portfolio (VADP), with almost everything but liquid Milk. The portfolio has over 20 categories of dairy products including paneer, cheese, curd, yogurt, butter, ghee and ice cream.
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