The Milky Mist Dairy Food IPO received 70% subscription on its opening day, while grey-market trends indicated a potential listing gain of around 15%.
As of 3:30 PM, the latest grey market premium (GMP) for the IPO stood at Rs 161 against the upper price band of Rs 140. If the premium remains unchanged, the estimated listing price for the Milky Mist IPO would be Rs 161.
However, the 15% figure represents a potential listing gain implied by the GMP and not an actual market return, since the shares have not yet been listed.
HOW MILKY MIST IPO PERFORMED ON DAY 1
The retail portion received 0.89 times subscription on the first day, making it the best-performing category.
The non-institutional investor (NII) segment followed with 0.73 times subscription, while the qualified institutional buyer (QIB) category, excluding anchor investors, recorded 0.41 times subscription.
The company is seeking to raise funds through a public issue of 11.09 crore equity shares. Of these, 3.88 crore shares have been set aside for retail investors, while 5.54 crore shares are allocated to QIBs and 1.66 crore shares to NIIs.
The opening-day figures indicate relatively cautious investor participation, particularly from institutional investors.
Since none of the categories crossed the 1x subscription mark on the first day, the IPO will likely require stronger demand during the remaining bidding sessions to achieve full subscription.
DOES GMP SIGNAL A POTENTIAL PROFIT FOR MILKY MIST?
Although the Milky Mist Dairy Food IPO received a reasonable response on its first day, activity in the grey market is indicating more positive expectations for the company’s stock debut.
The IPO’s latest grey-market premium was reported at Rs 21 by the end of the first day. At the upper end of the IPO’s Rs 140 price band, this translates into an estimated listing price of Rs 161, implying a potential gain of approximately 15%.
The GMP has also shown an upward trend, moving between Rs 0 and Rs 27 over the previous seven sessions. The latest movement therefore indicates improving grey-market sentiment ahead of the listing, even though the official subscription figures remain below full subscription.
However, GMP is an unofficial indicator and can change before the shares are listed. The actual listing price will ultimately be determined by demand in the public market and prevailing market conditions.
MILKY MIST IPO DETAILS
The public issue will remain open for bidding until August 12, with the company aiming to raise Rs 1,553 crore through the IPO.
The issue consists of a fresh issue of 10.20 crore shares worth Rs 1,428 crore. The remaining 0.89 crore shares, valued at Rs 125 crore, are being sold by existing shareholders through an offer for sale (OFS).
The IPO has a price band of Rs 133 to Rs 140 per share and a minimum lot size of 107 shares. At the upper end of the price band, retail investors will need to invest a minimum of Rs 14,980 for one lot.
The company plans to list its shares on both the NSE and BSE, with the listing tentatively scheduled for August 18.
