Mumbai: Milky Mist has raised about ₹482 crore in a pre-IPO round led by Singapore-based Temasek’s subsidiary Jongsong Investments Pte. Ltd, the dairy product maker said in a statement on Monday.
The fundraise comprises a primary capital infusion of about ₹357 crore and a secondary share sale of about ₹125 crore ahead of the company’s proposed initial public offering (IPO) later this year.
As part of the primary issuance, Milky Mist allotted 5,43,789 equity shares at ₹139.76 per share, aggregating about ₹7.6 crore. In addition, the company issued 25,00,000 compulsorily convertible preference shares (CCPS) at the same price, raising approximately ₹349.4 crore, said.
The entire primary investment was led by Jongsong Investments, while promoters Sathishkumar T. and Anitha S. sold 89,43,903 equity shares at ₹139.76 a share, aggregating roughly ₹125 crore, as part of a secondary transaction.
The development comes after the company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in July last year to raise up to ₹2,035 crore through an IPO. The regulator’s nod came through in October.
Of the ₹1,785 crore of fresh issue, the company said it will use about ₹750 crore to repay existing debt, while ₹414 crore will go towards expanding and upgrading the Perundurai manufacturing plant, including setting up facilities for whey protein concentrate, yoghurt, and cream cheese.
An additional ₹129 crore is earmarked for the purchase of visi coolers, ice cream freezers and chocolate coolers. The remaining amount will be used for general corporate purposes. is being managed by JM Financial, Axis Capital, and IIFL Capital Services as the lead book-running managers.
Headquartered in Erode, Tamil Nadu, Milky Mist is a leading Indian dairy brand that specializes in premium value-added products such as paneer, cheese, yoghurt, ice cream, butter, ghee, and other packaged dairy items.
Distinct from conventional dairy firms, Milky Mist does not sell liquid milk, allowing for stronger margins and a business model more aligned with fast-moving consumer goods () companies. The company operates fully automated, technology-enabled manufacturing facilities and has a dedicated in-house logistics system, enabling end-to-end distribution.
Milky Mist sources milk directly from over 67,000 farmers, ensuring consistent quality and supply. For FY25, the company reported revenue from operations of ₹2,349 crore and an earnings before interest, taxes, depreciation, and amortization (Ebitda) of ₹310 crore.