In a significant development in the financial markets, Mukka Proteins Ltd has opened its Initial Public Offering (IPO) for subscription today, Thursday, February 29, with the subscription period set to close on Monday, March 4. The company successfully garnered ₹67.20 crores from anchor investors on Wednesday, February 28, allocating 2,39,99,565 equity shares to them.
Mukka Proteins IPO Details
The IPO, valued at ₹224 crore, comprises a fresh issue of 8,00,00,000 equity shares with a face value of Re 1. Notably, this offering is a completely fresh issue, with no offer-for-sale component. The IPO price band has been fixed in the range of ₹26 to ₹28 per equity share, with a lot size of 535 equity shares and multiples thereafter.
Allocation Breakdown
Mukka Proteins has reserved 50% of the shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.
Company Overview
Mukka Proteins Ltd is a key player in the production of essential components for aqua feed, poultry feed, and pet food, manufacturing fish meal, fish oil, and fish soluble paste. Promoter directors Kalandan Mohammed Haris, Kalandan Mohammed Arif, and Kalandan Mohammed Althaf play active roles in the business.
Financial Performance
As per the company’s RHP, Mukka Proteins witnessed a notable surge in profit after tax (PAT) by 84.07% and a revenue jump of 52.52% between March 31, 2022, and March 31, 2023.
Utilization of IPO Proceeds
The net proceeds from the IPO are intended for general corporate purposes, investment in their associate, Ento Proteins Private Limited, and funding the working capital requirements of both entities.
Market Position and Peers
The company’s RHP highlights listed peers such as Avanti Feeds Ltd, Godrej Agrovet Ltd, Zeal Aqua Ltd, and Waterbase Ltd. Mukka Proteins is a market leader domestically, holding a 25-30% share in fish meals, fish oils, and related products.
Mukka Proteins IPO Grey Market Premium (GMP)
As of now, the grey market premium for Mukka Proteins IPO stands at +15, indicating a premium of ₹15 per share. Analysts suggest a strong listing, with the estimated listing price at ₹43 apiece, which is 53.57% higher than the IPO price of ₹28.
Expert Opinion
Dilip Davda, contributing editor at Chittorgarh, states, “Mukka Proteins is a leading company in fish meals, fish oils, and related products with a significant market share domestically. With growth in both top and bottom lines, the issue appears reasonably priced based on FY24 annualized earnings. Investors, particularly those with a long-term perspective, may find it appealing post-listing.”
In Summary
Mukka Proteins IPO is generating substantial interest in the market, and its strong financial performance coupled with positive expert opinions could contribute to a successful listing. Investors are closely watching this IPO, which is expected to make a mark in the aqua feed and related industries.
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