Milky Mist Dairy Shares Hit Upper Circuit on Day 2, Extend Listing Gains to Over 40%
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Milky Mist Dairy shares hit the upper circuit on their second trading day, extending gains from a strong listing debut that saw the stock close nearly 30% above its issue price.
Shares of Milky Mist Dairy Food Ltd hit the upper circuit at ₹199.65 apiece on Wednesday, August 19, a day after its stock market debut, extending gains against the ₹140 IPO issue price to over 40%.
The stock opened 4.68% higher at ₹190 and climbed to ₹199.65 by 9:33 am, even as the NSE Nifty 50 index declined 0.26%. At 10:05 am, the stock was trading 10% higher at ₹199.55, valuing the company at ₹15,362.23 crore.
Milky Mist had made its debut on the BSE and NSE on Tuesday, August 18, opening at ₹165, a 17.85% premium to its issue price of ₹140 on both exchanges. The stock ended the session at ₹181.45 on the BSE, up 29.60%, and ₹181.50 on the NSE, gaining 29.64% over the issue price. At Tuesday's close, the company's market capitalisation stood at ₹13,968.81 crore.
The initial public offering of Milky Mist Dairy Food was subscribed 56.12 times on the final day of bidding. The ₹1,553-crore IPO had a price band of ₹133-140 per share and comprised a fresh issue of shares worth up to ₹1,428 crore and an offer for sale of up to ₹125 crore.
The mainboard listing is the largest IPO by an Indian dairy company to date. Its listed peers include Parag Milk Foods Ltd, Hatsun Agro Product Ltd and Dodla Dairy Ltd.
The company plans to use proceeds from the fresh issue to repay or prepay borrowings, expand and modernise its manufacturing facility at Perundurai in Tamil Nadu and strengthen its cold-chain infrastructure. It also plans to set up production units for whey protein concentrate, yoghurt and cream cheese, besides installing ice cream freezers and chocolate coolers. A portion of the proceeds will be used for general corporate purposes.
Founded in Erode, Tamil Nadu, Milky Mist specialises in value-added dairy products such as paneer, cheese, curd, yoghurt, butter, ghee and ice cream. The company does not operate in the liquid milk segment.
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Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
