Milky Mist Shares Jump 30% on India Stock Market Debut
Listen to the story
Shares of Milky Mist Dairy Food, an Indian dairy company, rose almost 30% on their first day of trading in India.
The company's market debut was strong, and Milky Mist ended the day with a valuation of $1.5 billion.
Milky Mist is backed by Temasek, a large investment company based in Singapore. Temasek has invested money in Milky Mist before this stock market listing.
The company held an initial public offering, often called an IPO, to sell shares to investors for the first time.
When a company holds an IPO, it offers its shares to the public so that anyone can buy them on the stock market.
On its first trading day, Milky Mist shares began at a premium, meaning they started trading above their offer price.
The shares then kept rising, and by the end of the day they were nearly 30% higher than the price at which they were first sold.
This kind of strong first-day performance suggests that demand from investors for the shares was high.
A high valuation like $1.5 billion shows that investors believe Milky Mist can continue to grow and make profits.
Temasek's support may have also given investors more confidence in the company, since Temasek is a well-known global investor.
The strong debut is good news for both Milky Mist and its early backers, as it increases the value of their stake in the company.
Vocabulary10 words
- debut
- the first appearance of something, like the first day of stock trading
- valuation
- the total money value of a company
- backed
- supported with money
- initial public offering
- the first time a company sells its shares to the public
- stock market
- a place where shares of companies are bought and sold
- premium
- a price that is higher than the usual or starting price
- demand
- how much people want to buy something
- stake
- the part of a company that someone owns
- investment
- money given to a business in hope it will grow
- profits
- money a company earns after costs
Quiz
Answer key
1. Nearly 30% 2. Temasek 3. $1.5 billion
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Shares of Milky Mist Dairy Food, an Indian dairy company, rose almost 30% on their first day of _____ in India.
The company's market debut was strong, and Milky Mist ended the day with a _____ of $1.5 billion.
Milky Mist is _____ by Temasek, a large investment company based in Singapore.
The company held an initial public offering, often called an _____, to sell shares to investors for the first time.
When a company holds an IPO, it offers its shares to the _____ so that anyone can buy them.
On its first trading day, Milky Mist shares began at a _____, meaning they started trading above their offer price.
This kind of strong first-day performance suggests that _____ from investors for the shares was high.
A high valuation like $1.5 billion shows that investors believe Milky Mist can continue to _____ and make profits.
Temasek's support may have also given investors more _____ in the company.
The strong debut increases the value of the early backers' _____ in the company.
Discussion questions
- Why do you think investors were so interested in Milky Mist shares?
- What does a strong IPO debut tell us about a company's future?
- Do you think being backed by a well-known investor like Temasek helps a company's stock market debut? Why?
- Would you want to invest in a company on its first day of trading? Why or why not?