India’s Milky Mist Dairy Food said on Tuesday it cut the size of its initial public offering to 15.53 billion rupees ($162.8 million) after pre-listing deals to sell a stake to a Temasek unit, with the IPO set to launch next week.
Singapore state investor Temasek’s unit bought a 5.16% stake via deals in April—3.57 billion rupees in shares and convertible preference shares issued by the company, and 1.25 billion rupees in shares bought from founders Sathishkumar T and Anitha S – a red herring prospectus showed late Tuesday.
The Tamil Nadu-based dairy products maker is betting on its premium range of goods such as Greek yoghurt and protein-enhanced cottage cheese, which have found popularity among India’s rapidly growing health-conscious, working-age population.
Milky Mist initially filed draft papers in July last year and received regulatory approval in October. It was earlier targeting an IPO worth 20.35 billion rupees.
The company will now issue new shares worth 14.28 billion rupees, while the founders will sell shares worth 1.25 billion rupees.
The IPO will run from August 11 to 13 and anchor investors will get to bid a day earlier on August 10. Shares are expected to list on the BSE and National Stock Exchange on August 18.
Milky Mist’s profit rose about 176% to 1.27 billion rupees in the year ended March 31, while revenue from operations jumped 34% to 31.38 billion rupees.
CEO K. Rathnam told Reuters earlier this year that the company expects to maintain about 30% annual revenue growth.
The company, which competes with Hatsun Agro and Heritage Foods, said its products are available at more than 375,000 retail outlets across India.
Reuters
