Milky Mist IPO oversubscribed as GMP points to gains ahead of Aug. 18 listing

Shares of Milky Mist Dairy Food came under mild profit-booking pressure on Thursday after gaining 42% over the previous two trading sessions following its much-awaited stock market debut.The stock slipped as much as 4.21% to an intraday low of Rs 191.25 on the NSE. However, the decline later moderated, with the shares trading broadly flat around Rs 200 apiece.The Thursday dip comes after a strong run since listing. Milky Mist made its market debut on August 18 at Rs 165 per share, an 18% premium to its IPO price of Rs 140. The stock extended its gains in the following trading session, rising another 10% and taking investors on a strong post-listing ride.The strong debut was backed by an overwhelming response to Milky Mist Dairy Food’s Rs 1,553 crore IPO, which was subscribed a staggering 56.12 times overall.The issue comprised a fresh issue of 10.20 crore shares worth Rs 1,428 crore and an Offer for Sale (OFS) of 89 lakh shares valued at Rs 125 crore. The IPO was priced in the range of Rs 133-140 per share.Interestingly, investor enthusiasm was already visible before the listing. Milky Mist’s unlisted shares were commanding a grey market premium (GMP) of around 14% over the IPO price, signalling strong expectations ahead of its debut.Following the sharp post-listing gains, the company’s market capitalisation currently stands at around Rs 15,369 crore.So, should you buy, sell or hold Milky Mist shares?While Milky Mist’s business fundamentals remain encouraging, analysts believe investors may need to exercise caution after the stock’s strong listing performance.Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted the company’s 33.6% revenue CAGR, improving margins and 32% return on equity (RoE) as key strengths. She also pointed to Milky Mist’s leadership in the value-added dairy segment as a factor supporting its premium valuation.Adding to investor confidence, Temasek-backed Jongsong Investments invested Rs 482 crore in the pre-IPO round at Rs 139.76 per share for a 5.2% stake. According to Nyati, the investment offers additional validation of the company’s growth prospects and IPO valuation.However, the valuation is where the stock may face its biggest challenge. At around 85 times FY26 earnings, Milky Mist is trading at a substantial premium to the dairy sector’s average P/E of around 52.5 times, Nyati noted.“While the premium is supported by its FMCG-like margins and value-added product mix, the strong listing may lead to some profit-booking,” she said.Her view remains positive on the company’s long-term business prospects, but she cautioned investors against chasing the stock after its sharp rally.The strategy for investors, according to Shivani Nyati: Hold the stock, maintain a stop-loss at Rs 150 and look to add on meaningful dips rather than buying aggressively at current levels.Strong financial performanceMilky Mist’s latest financial numbers provide further support to its growth story. For the year ended March 2026, the company reported revenue of Rs 3,145 crore, marking a 33.6% year-on-year growth. More strikingly, its net profit jumped 175.7% YoY to Rs 127 crore.With strong revenue growth, expanding profitability and a dominant position in value-added dairy products, Milky Mist has emerged as one of the more closely watched new-age dairy stocks. However, after its sharp post-IPO gains, the key question for investors is no longer simply whether the business is attractive, but whether the current valuation leaves enough room for further upside.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Milky Mist shares hit another 10% upper circuit on Wednesday, taking their gains to 42.5% from the IPO price of Rs 140. Analysts remain positive on the company’s strong foothold in value-added dairy products, improving margins and growth prospects, but caution that valuations are elevated. Existing investors have been advised to hold and accumulate on meaningful dips.

Mumbai Milky Mist Dairy Food was listed on the NSE at ₹165 on Tuesday, a 17.9% premium to its issue price of ₹140. The stock ended at the day's high of ₹181.5. The company's market capitalisation was at ₹13,972.66 crore at close.Read more: Augmont Enterprises IPO: Rs 825 crore issue price band set at Rs 750-788

New Delhi: Shares of packaged food company Milky Mist Dairy Food Ltd on Tuesday listed with a premium of nearly 18 per cent against the issue price of Rs 140.The stock started trading at Rs 165, up 17.85 per cent from the issue price on both the BSE and NSE.It further jumped 29.60 per cent to Rs 181.45 on the BSE.The company commanded a market valuation of Rs 13,968.81 crore.Milky Mist IPO: Sathish Kumar Sold 10 Kg Paneer, Here's How Did A School Dropout Build A ₹10,778-Crore Company? The initial public offering (IPO) of Milky Mist Dairy Food Ltd was subscribed 56.12 times on the last day of the share sale on Thursday.The Rs 1,553-crore IPO had a price band of Rs 133-140 per share.The IPO had a fresh issue of shares worth up to Rs 1,428 crore and an offer-for-sale (OFS) of up to Rs 125 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.Milky Mist ₹1,553 Crore IPO To Open On August 11; Price Band Fixed At ₹133-140 Per Share 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.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.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. Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.

Milky Mist share price extended gains and was locked in an upper circuit of 10% at Rs 181.50 apiece on NSE. At this level, Milky Mist shares were up by nearly 30% from their issue price.

Milky Mist share price extended gains and was locked in an upper circuit of 10% at Rs 181.50 apiece on NSE. At this level, Milky Mist shares were up by nearly 30% from their issue price.