Dairy major Milky Mist Dairy Food Ltd has successfully raised approximately ₹482 crore ($51 million) in a strategic funding round led by Jongsong Investments Pte Ltd, a subsidiary of Singapore’s sovereign wealth fund, Temasek Holdings.
This capital injection serves as a significant institutional endorsement for the Tamil Nadu-based manufacturer as it prepares for its highly anticipated stock market debut later this year.
Breakdown of the Transaction
The funding structure consists of both fresh capital and a secondary sale by the company’s founders:
- Primary Capital Infusion (₹357 Crore):
- Issued 5.43 lakh equity shares and 25 lakh compulsorily convertible preference shares (CCPS).
- All shares were priced at ₹139.76 each.
- The CCPS will convert to equity on a 1:1 basis before the IPO.
- Secondary Share Sale (₹125 Crore): Promoters Sathishkumar T and Anitha S offloaded roughly 89.4 lakh equity shares at the same price point.
Read More: OMFED Increases Milk Prices Across Odisha by ₹4 Per Litre
Road to the IPO
Milky Mist filed its draft red herring prospectus (DRHP) with SEBI in July 2024 and received the regulator’s approval in October 2025. This pre-IPO round establishes a clear valuation benchmark for investors ahead of the public listing.
Planned Utilization of Proceeds:
The company intends to use the IPO funds to fuel its next phase of growth, focusing on:
- Capacity Expansion: Modernizing its flagship manufacturing facility in Perundurai.
- Product Diversification: Launching new lines including whey protein concentrate, cream cheese, and specialized yoghurts.
- Infrastructure: Strengthening the distribution network by investing in advanced cooling and cold-chain logistics.
- Debt Reduction: Repaying existing borrowings to lean out the balance sheet.
Market Positioning
While traditionally a powerhouse in Southern India, the Erode-based company has rapidly scaled its presence nationally. Milky Mist has successfully shifted its focus toward high-margin value-added dairy products (VADP)—such as paneer, cheese, and butter—capitalizing on the growing consumer preference for branded, high-quality dairy items over unorganized local supplies.
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