Temasek Unit Backs Milky Mist in $50.8M Pre-IPO Round

Milky Mist Dairy Food, an India-based dairy products maker, raised approximately 4.8 billion rupees (US$50.8 million) in a pre-IPO funding round led by Jongsong Investments, an indirect unit of Temasek Holdings. The round combines new share issuance and promoter share sales ahead of the company’s planned listing. According to YourStory, the deal structure included 3.6 billion rupees (US$37.6 million) in primary capital and 1.3 billion rupees (US$13.2 million) in secondary sales.

Transaction Structure

Promoters Sathishkumar T and Anitha S sold shares as part of the round. Milky Mist issued equity shares and compulsorily convertible preference shares at the same price to investors. In July, the company filed draft IPO papers with India’s Securities and Exchange Board (Sebi). The company plans to deploy proceeds for debt repayment and expanding and upgrading its Perundurai manufacturing plant.

Financial Profile and Market Position

According to Crisil Ratings, Milky Mist’s revenue rose at a three-year compound annual growth rate of 32% to 23.3 billion rupees (US$245 million) in fiscal 2025. The company reported fiscal 2025 revenue from operations of 23.5 billion rupees (US$247 million) and profit after tax of 460.7 million rupees (US$4.85 million).

The company held approximately 17% of India’s organized packaged paneer market by value in fiscal 2025, making it the largest private brand in the segment. However, Milky Mist carries significant debt. Crisil Ratings measured the company’s gearing ratio—which measures debt against equity—at 4.26 times as of March 31, 2025. According to the company’s draft IPO papers, approximately 7.5 billion rupees (US$79 million) from the fresh issue will be directed toward debt repayment.

Strategic Positioning

Temasek’s investment supports Milky Mist’s strategy of positioning dairy operations as a fast-moving consumer goods business. The company focuses on value-added products and avoids liquid milk, which the company states helps maintain margins. This approach differs from many traditional dairy companies that rely on liquid milk as a core business line.

The funding round reflects broader investor interest in branded dairy and packaged-food businesses that combine premium product positioning with automated production facilities and in-house logistics networks. Such businesses may command higher valuations compared to traditional dairy operations—peer company Britannia trades at a price-to-earnings ratio of 65.05.