Milky Mist lists at 18% premium

A new listing today – Milky Mist. It got listed on the BSE at Rs.165 v/s the IPO price of Rs.140, a premium of almost 18%.

The IPO had met with a good response, with QIBs driving the demand with their portion subscribing 155.83x, HNIs at 34.91x and Retail at 8.41x, with overall subscription at 56.12x.

Milky Mist Dairy is a 28-year-old dairy products brand, with 70% of Rs. 3,100 cr revenue generated from South India. It is India’s largest private packaged paneer brand in the organized market, with 19% market share, and the largest private packaged cheese brand in South India with 12% market share.

In our IPO Analysis, we had concluded - Milky Mist Dairy’s growth has been impressive, albeit on a smaller base. As not much upside in seen in the near term, one may skip the IPO of Milky Mist.

The key takeaway is that the listing premium was backed more by institutional conviction than only retail excitement, and this often raises expectations from day one. After the listing pop, the market will now shift focus from subscription numbers to actual delivery.