The shares of freshly-listed Milky Mist Food Ltd. slumped over 4% on Thursday after rising as high as 6% earlier. The steep fall came after a two-day winning streak.
Milky Mist shares pare listing gains
The dairy products company was down 2% by 12 p.m. to Rs 195.65 apiece on the NSE. The shares have gained over 27% since listing, excluding the 17% premium from its issue price of Rs 140.
The stock had opened near the intraday high, up over 6% at Rs 211.80 earlier in the day.
ALSO READ: No Milk, Creamy Margins: DAM Capital Initiates Milky Mist Coverage With 'Buy' Rating
Milky Mist's Creamy Listing
The pure play value added dairy company 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.
DAM Capital began coverage of Milky Mist ahead of its market debut with an 'outperform' rating. The brokerage initiated its coverage on a bullish note with a price target of Rs 175, implying a 25% upside.
The brokerage placed its 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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