Milky Mist raises Rs 482 crore from Temasek arm in pre-IPO round

New Delhi, May 4 (PTI) Dairy products maker Milky Mist Dairy Food Ltd has raised about Rs 482 crore from Jongsong Investments Pte Ltd, an indirect wholly-owned subsidiary of Temasek Holdings, in a pre-initial public offering (IPO) funding round, according to a public announcement.

The fundraise includes a primary capital infusion of around Rs 357 crore and a secondary share sale worth about Rs 125 crore ahead of the company’s proposed IPO.

As part of the primary issuance, the company allotted 5,43,789 equity shares at Rs 139.76 apiece, aggregating to Rs 7.6 crore. It also issued 25 lakh compulsorily convertible preference shares (CCPS) at the same price, raising about Rs 349.4 crore. The CCPS will be converted into equity shares on a 1:1 basis prior to listing.

The entire primary investment was led by Jongsong Investments, marking a significant institutional backing from Temasek.

In addition, promoters Sathishkumar T and Anitha S divested 89,43,903 equity shares at Rs 139.76 per share, aggregating to Rs 125 crore, as part of the secondary transaction.

The pre-IPO placement comes ahead of Milky Mist’s planned market debut.

In July, Milky Mist Dairy Food filed preliminary papers with markets regulator Sebi to raise funds through its maiden public offering.

Proceeds from the public issue will be used to fund debt repayment, expansion, and modernisation of the Perundurai manufacturing facility, which includes setting up whey protein concentrate, yogurt, and cream cheese plants. Further, funds will be invested in deploying visi coolers, ice cream freezers, and chocolate coolers, and general corporate purposes.

Founded in Erode, Tamil Nadu, Milky Mist is a leading dairy brand in India, exclusively focused on premium value-added dairy products, including paneer, cheese, yogurt, ice cream, butter, ghee, and packaged foods.

Unlike traditional dairy companies, Milky Mist does not sell liquid milk, enabling higher margins and strong positioning akin to FMCG companies. PTI SP DRR