Milky Mist IPO GMP hits Rs20 premium, suggesting 15% listing gain

The grey‑market premium on Milky Mist Dairy Food’s upcoming IPO has risen to Rs 20 per share, a level that translates to an estimated listing gain of around 15 % over the top of the issue price band.

Livemint reported a slightly higher premium, quoting market observers that “Milky Mist Dairy Food IPO GMP today: According to market observers, the company shares are available at a premium of ₹22 in the grey market today”.

“Milky Mist Dairy Food IPO GMP today: According to market observers, the company shares are available at a premium of ₹22 in the grey market today”

Livemint, via IPO subscription desk

Milky Mist’s public issue has been trimmed from the earlier target of Rs 2,035 crore to a total of Rs 1,553 crore. The reduction follows a pre‑IPO placement to Jongsong Investments, a subsidiary of Singapore’s Temasek. Jongsong now holds roughly 5.2 % of the company after buying shares at Rs 139.76 each in April.

The composition of the issue is split between a fresh issue of Rs 1,428.2 crore and an offer‑for‑sale (OFS) of Rs 125 crore by existing shareholders. Allocation is earmarked as 50 % for qualified institutional buyers (QIBs), 15 % for non‑institutional investors (NIIs) and the remaining 35 % for retail participants.

The live‑blog of the IPO market notes a 2.17‑times oversubscription on the second day of bidding.

Anand Rathi has given the issue a “Subscribe – Long Term” rating, citing the company’s strong top‑line growth. Milky Mist reported total income of Rs 3,145.01 crore in FY 26, a 34 % rise year‑on‑year from Rs 2,354.79 crore in the previous fiscal. Profit after tax surged 176 % to Rs 127.01 crore, up from Rs 46.07 crore a year earlier. While the brokerage finds the valuation “fairly priced”, it flags concerns around the premium placed on the shares relative to peers.

The premium of Rs 20 (or Rs 22) sits on an upper issue price of Rs 140, implying an estimated listing price near Rs 160 if the grey‑market trend persists. Such a jump would place the debut at a notable premium relative to the issue band, echoing the dynamics seen in Dhoot Transmission’s GMP of Rs 276 and Behari Lal Engineering’s GMP of Rs 67, both of which suggest sizeable listing gains.

Milky Mist’s business model adds depth to the investor narrative. Founded in July 2014, the company has built an integrated, farm‑to‑consumer operation that procures milk directly from farmers, processes it in automated facilities, and distributes through its own cold‑chain network and multi‑channel footprint. Its product range spans cheese, paneer, butter, curd, ghee, yogurt, ice‑cream, UHT, frozen foods, ready‑to‑eat and ready‑to‑cook items, as well as chocolates. Sub‑brands such as SmartChef, Capella and Misty Lite enhance its market reach.

Key snapshot of the Milky Mist IPO

• Issue size: Rs 1,553 crore (fresh issue Rs 1,428.2 crore + OFS Rs 125 crore)
• Allocation: 50 % QIBs, 15 % NIIs, 35 % retail
• Pre‑IPO placement: Jongsong Investments holds 5.2 % after purchasing at Rs 139.76 per share in April
• Grey‑market premium: Rs 20 per share (Livemint reports Rs 22)
• Estimated listing gain: around 15 % if premium persists
• Financials FY 26: total income Rs 3,145.01 crore (+34 % YoY); PAT Rs 127.01 crore (+176 % YoY)
• Analyst rating: “Subscribe – Long Term” (Anand Rathi) with valuation concerns noted