Milky Mist Dairy Food Ltd

Use of Proceeds

The funds raised through this IPO will be used for:

Initial public offering of 110,943,192 equity shares of face value of Rs. 2 each ("Equity Shares") of Milky Mist Dairy Food Limited ("the Company" or "Issuer") for cash at a price of Rs. 140 per equity share (Including a premium of Rs. 138 per Equity Share) ("Offer Price") aggregating to Rs. 1553.00 Crores comprising a fresh issue of 102,014,622 equity shares of face value of Rs. 2 each aggregating to Rs. 1428.00 crores by the company (the "Fresh Issue") and an offer for sale of 8,928,570 equity shares ("Offered Shares") aggregating to Rs. 125.00 Crores by Sathishkumar T and Anitha S (the "Promoter Selling Shareholders", and such offer for sale by the promoter selling shareholders, the "Offer for Sale" together with the fresh issue, the "Offer"). This offer includes a reservation of 157,480 equity shares of face value of Rs. 2 each aggregating to Rs. 2 Crores (Constituting 0.02% of the post-offer Paid-up Equity Share Capital of the Company) for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers, may offered a discount of 9.29% on the offer price (Equivalent of Rs. 13 per equity share) to eligible employees bidding under the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constituted 14.41% and 14.39%, respectively of the post-offer paid-up equity share capital of the company. The company, in consultation with the book running lead managers, undertook a pre-ipo placement of (i) 543,789 equity shares of face value of Rs. 2 each at a price of Rs. 139.76 per equity share (including a premium of Rs. 137.76 per equity share); and (ii) 25,000,000 ccps of face value of Rs. 2 each at a price of Rs. 139.76 per ccps, aggregating to Rs. 357.00 million, as permitted under the applicable law. The pre-ipo placement was at a price decided by the company, in consultation with the book running lead managers and was completed prior to filing of this red herring prospectus with the roc. The amount raised pursuant to the pre-ipo placement was reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the securities contracts (regulation) rules, 1957, as amended and the size of the fresh issue has been revised to up to Rs. 1428.00 Crores. The pre-ipo placement did not exceed 20% of the original size of the fresh issue as disclosed in the draft red herring prospectus. The company had appropriately intimated the subscribers to the pre ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that the company may proceed with the offer or the offer may be successful and will result into listing of the equity shares on the stock exchanges. Further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement has been appropriately made in the relevant sections of this red herring prospectus and will be made in the prospectus. Price Band: Rs. 140 per equity share of face value of Rs. 2 each. The floor price 70.00 times the face value of the equity shares, respectively. Bids can be made for a minimum of 107 equity shares of face value of Rs. 2 each and in multiples of 107 equity shares of face value of Rs. 2 each thereafter. A discount of Rs. 13 per equity share is being offered to eligible employees bidding in the employee reservation portion.