India's Milky Mist Dairy Food is looking to raise up to Rs20.35bn ($234.7m) through an initial public offering of shares. 

In its draft red herring prospectus filed with the Securities and Exchange Board of India, the group said its IPO includes a fresh issue of Rs17.85bn and an offer-for-sale of Rs2.5bn by promoter shareholders Sathishkumar T and Anitha S. 

All the shares are priced at Rs2 each.

Erode, Tamil Nadu-headquartered Milky Mist plans to use the net proceeds from the fresh issue for repaying certain debt and capital expenditure for expanding and modernising the Perundurai manufacturing facility.  

The funds will also be used to invest in visi coolers, ice-cream freezers, and chocolate coolers, along with general corporate purposes. 

Milky Mist specialises in value-added dairy products such as paneer, cheese, and yogurt, along with ice cream, ghee, and butter.  

With the listing of equity shares, the company expects to enhance its visibility and brand image, as well as create a public market for its equity shares in India. 

Milky Mist's brand portfolio includes its namesake line, SmartChef, Capella, and Misty Lite. It also recently acquired Briyas and Asal.  

Its products are sold across multiple channels including general trade, modern trade, Horeca, and online platforms. 

In the financial year ended on 31 March, Milky Mist’s revenue from operations increased to R23.49bn, marking an increase of 29%.  

EBITDA reached Rs3.1bn, reflecting growth of 39.6%.

Profit after tax saw a rise to R460.74, a 137% increase from the pervious year.   

The group sources milk from more than 67,000 farmers located across the states of Tamil Nadu, Andhra Pradesh and Karnataka.