Deal Overview
Milky Mist Dairy Food, an Erode-based leader in premium dairy products, has successfully raised Rs 482 crore in a strategic pre-IPO funding round. The round was spearheaded by Jongsong Investments Pte Ltd, a subsidiary of global investment firm Temasek Holdings.
Deal Structure
- Primary Capital: Rs 357 crore, comprising 5.43 lakh equity shares and 25 lakh compulsorily convertible preference shares.
- Secondary Sale: Rs 125 crore in shares offloaded by promoters Sathish Kumar T and Anitha S.
- Valuation: The company is now valued at approximately Rs 9,300 crore, reflecting a strategic recalibration from earlier IPO valuation targets of Rs 20,000 crore.
Financial Performance
Milky Mist has demonstrated robust growth, with revenue climbing 29% year-on-year to Rs 2,349 crore in FY25. Profitability also saw significant momentum, rising 2.4X to Rs 46 crore during the same period.
Strategic Objectives
The capital infusion arrives as the company prepares for its public market debut, having already secured SEBI approval. Funds are earmarked for:
- Debt repayment to strengthen the balance sheet.
- Capacity expansion and modernization of the Perundurai production facility.
- Significant enhancements to the national cold chain and distribution network.
Market Context
By strictly avoiding liquid milk to focus on higher-margin, value-added products like paneer, cheese, and yogurt, Milky Mist has effectively carved out a premium FMCG niche. The involvement of Temasek underscores continued institutional confidence in India’s organized dairy sector, even as market participants adopt a more cautious approach to IPO valuations.