Shares of packaged food company Milky Mist Dairy Food Ltd. on Wednesday, August 19 with the stock hitting upper circuit at Rs 199.65 apiece after a day after listing. The stock opened 4.68% higher at Rs 190 and extended gains to touch Rs 199.65 at 9:33 am. This compares to a 0.26% fall in the NSE Nifty 50 Index.
Milky Mist was listed on BSE and NSE on Tuesday, August 18. Shares of the firm ended at Rs 181.45, up 29.60% on the BSE while the stock ended at Rs 181.50, a premium of 29.64 per cent at the NSE. The stock started trading at Rs 165, up 17.85% from the issue price on both the BSE and NSE. The company commanded a market valuation of Rs 13,968.81 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.
ALSO READ: Milky Mist Eyes 90% Unorganised Paneer Market As New 48-Acre Maharashtra Plant Gets Approval
The company plans to deploy funds towards setting up whey protein concentrate, yoghurt and cream cheese plants, besides installing ice cream freezers and chocolate coolers. A portion of the proceeds will also be used for general corporate purposes.
Milky Mist Dairy Food Ltd. Share Price Today
Milky Mist Dairy Food Ltd. Share Price Today
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Dam Capital is tracking the company and they maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target of Rs 175 implies a downside of 12.3%.
Founded in Erode, Tamil Nadu, 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.
ALSO READ: No Milk, Creamy Margins: DAM Capital Initiates Milky Mist Coverage With 'Buy' Rating
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