CHENNAI — Milky Mist Dairy Food Pvt. Ltd. has postponed its initial public offering, originally scheduled for early August, to October, after a ₹482 crore pre-IPO funding round led by Singapore's Temasek prompted the company to reduce the overall size of the listing.
The company had initially sought to raise ₹2,035 crore through its public listing. Reports from July 24 indicated the company was set to launch what was anticipated to be India's largest dairy IPO in the first week of August. The pre-IPO investment has reduced its immediate capital needs, leading to the revised strategy.
Milky Mist's earlier IPO structure detailed a fresh issue of ₹1,785 crore to fund operations and growth, alongside an offer-for-sale component of ₹250 crore that would have allowed existing shareholders to divest a portion of their stakes.
The company cited market volatility across Indian exchanges and weak post-listing performance of recent issues as reasons for the delay.
Temasek anchored the entire ₹482 crore pre-IPO round, which concluded in May. The private capital injection provides Milky Mist with immediate financial resources ahead of its revised listing schedule.
The company intends to deploy the funds for expansion, including enhanced production capacity and broader market reach across India. A portion will also be used to reduce existing debt.
The pre-IPO funding round also led to a reduction in Milky Mist's overall valuation, reflecting both the terms of the private investment and prevailing equity market conditions.
Milky Mist's offering was initially positioned as India's largest dairy sector IPO. The ₹482 crore in private capital directly reduces the amount the company needs to raise from public investors, allowing for a smaller listing during a period of uncertain market conditions.
Several companies planning public offerings in India have recalibrated their timing and size in response to investor sentiment and the recent performance of newly listed firms.
