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With SEBI’s green signal, Milky Mist is now gearing up to make its stock market debut, an ambitious step aimed at transforming the once-small dairy into a national player
Milky Mist aims for pan-India expansion, challenging major dairy brands.
Erode-based dairy brand Milky Mist has received approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO) worth Rs 2,035 crore, marking a major milestone in its three-decade journey from a small shop to one of the most trusted dairy names.
According to a report by Moneycontrol, the IPO will comprise a fresh issue of shares worth Rs 1,785 crore and an offer-for-sale (OFS) of Rs 250 crore by the company’s promoters, T. Sathish Kumar and his wife Anita Kumar. Kumar, who founded Milky Mist in the 1990s with modest beginnings in Erode, Tamil Nadu, will continue to retain a substantial stake even after the public issue.
The funds raised through the IPO will primarily be used to reduce existing debt of about Rs 750 crore and finance new manufacturing units, plant expansion, logistics, and working capital needs. As of May 2025, Milky Mist’s total debt stood at Rs 1,463.59 crore, including both secured and unsecured loans. The move is expected to significantly strengthen the company’s balance sheet and support its next phase of growth.
At present, nearly 71% of Milky Mist’s sales come from South India, particularly Tamil Nadu and Karnataka, where the brand enjoys strong customer loyalty for products such as paneer, curd, ghee, and buttermilk. However, the company is now eyeing a pan-India expansion, with plans to increase its footprint in northern markets such as Delhi and Mumbai, where established giants like Amul, Hatsun, Britannia, and Nestle already dominate.
While Milky Mist faces stiff competition, it has built its business independently without external private equity or institutional backing. Industry observers see its self-made growth as a sign of operational resilience. The company’s management includes industry veterans, including its CEO, Ratnam, who previously spent a decade with Amul.
The IPO will be managed by JM Financial, Axis Capital, and IIFL Securities, who are acting as the issue’s lead book-running managers.
Erode, India, India
October 28, 2025, 12:43 IST
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