Milky Mist Scoops ₹482 Crore in Pre-IPO Round Anchored by Temasek Subsidiary
ERODE, TAMIL NADU — Value-added dairy powerhouse Milky Mist Dairy Food Ltd has successfully closed a ₹482 crore pre-IPO funding round. The investment was led by Jongsong Investments Pte Ltd, an indirect wholly-owned subsidiary of Singapore’s sovereign wealth fund, Temasek Holdings.
This capital infusion marks a significant milestone for the Erode-based company as it gears up for its highly anticipated stock market debut later this year.
Deal Architecture: Fresh Capital & Secondary Sale
The funding round is structured as a mix of fresh capital to drive growth and a partial exit for the founders:
Primary Infusion (~₹357 Crore): This component includes the allotment of 5.43 lakh equity shares (approx. ₹7.6 crore) and 25 lakh Compulsorily Convertible Preference Shares (CCPS) valued at approximately ₹350 crore. These CCPS will convert into equity on a 1:1 basis prior to the listing.
Secondary Sale (~₹125 Crore): Promoters Sathishkumar T and Anitha S divested roughly 89.43 lakh shares to provide liquidity to early stakeholders.
Valuation: The placement was executed at a price point of ₹139.76 per share, pegging the company’s pre-money valuation at approximately ₹8,976.6 crore.
Strategic Use of Funds
Milky Mist intends to use the primary proceeds to scale its massive, fully automated manufacturing facility in Perundurai, Tamil Nadu. Key focus areas include:
Capacity Expansion: Setting up dedicated lines for high-growth products like whey protein concentrate, Greek yogurt, and cream cheese.
Infrastructure: Strengthening the cold chain network by deploying thousands of visi-coolers and specialized freezers across retail touchpoints.
Debt Management: A portion of the funds will be utilized for debt repayment to optimize the balance sheet ahead of the IPO.
Financial Performance & IPO Timeline
Unlike traditional dairy peers, Milky Mist operates on an FMCG model, eschewing liquid milk sales in favor of high-margin products like paneer, cheese, and Ghee. This strategy has paid off; the company reported a stellar revenue of ₹3,275 crore for FY26, surpassing internal growth targets.
The dairy major received SEBI approval for its ₹2,035 crore IPO in October 2025. With that approval valid until October 2026, industry experts believe the company is now in the "strike zone," with CEO K Rathnam confirming they are currently evaluating the ideal market window for the launch.
Quick View: Milky Mist Stats (FY26)
Revenue: ₹3,275 Crore
IPO Size: ₹2,035 Crore (Approved)
Pre-IPO Lead: Jongsong Investments (Temasek)
Core Strength: 100% Value-added dairy (0% liquid milk sales)