Temasek-backed Milky Mist Dairy Food's nearly $163 million initial public offering was fully subscribed on the second day of a three-day bidding process on Wednesday, led by retail and non-institutional investors.
The dairy products maker received bids for 86.88 million shares as of 10:48 a.m. IST, 1.06 times the 81.80 million shares on offer, exchange data showed.
Retail investors bid for 53.23 million shares, 1.30 times the number of shares set aside for them.
The non-institutional investors subscribed 1.37 times the portion reserved for them, while qualified institutional investors subscribed 39% of their allotted portion.
The company raised 4.65 billion rupees from 19 anchor investors, including Singapore state investor Temasek, the International Finance Corporation and HDFC Mutual Fund, ahead of the IPO.
The 15.53 billion rupee ($162.96 million) IPO comprises a fresh issue of shares worth 14.28 billion rupees and an offer-for-sale of shares worth 1.25 billion rupees by founders Sathishkumar T and Anitha S.
The company cut the IPO size from 20.35 billion rupees after pre-listing deals with Temasek's Jongsong Investments, which acquired a roughly 5.2% stake in the company.
Milky Mist is seeking a valuation of about 107.78 billion rupees ($1.13 billion) at the top end of its price range of 133-140 rupees per share, just over half the market value of larger rival Hatsun Agro Product.
The dairy products maker, whose portfolio includes cheese, butter, ice cream, Greek yogurt and protein-enhanced cottage cheese, plans to use part of the IPO proceeds to repay debt and expand and upgrade its flagship manufacturing facility in Perundurai, Tamil Nadu.
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 annual revenue growth of about 30%.
The IPO will close for subscription on August 13, and shares are expected to begin trading on the BSE and National Stock Exchange on August 18.