Mukka Proteins IPO: The preliminary public providing of Mukka Proteins Ltd, which manufactures fish meal, fish oil and fish soluble paste, has been opened on Thursday, February 29. The value band of the Rs 224-crore IPO has been fastened at Rs 26-28 apiece. The firm’s maiden public problem will conclude on March 4.
Till 11:00 am on the primary day of bidding, the IPO has acquired 0.32 per cent subscription garnering bids for 1,78,36,365 shares as in opposition to 5,60,00,435 shares on supply, as per the most recent NSE information. The retail quota has acquired 0.54 instances subscription, whereas the non-institutional investor (NII) class has been subscribed 0.22 instances.
The allotment of the Mukka Proteins IPO will happen on March 5, whereas its itemizing will happen on each NSE and BSE on March 7, 2024.
Mukka Proteins IPO: Should You Subscribe?
Assigning the ‘Subscribe-Long Term’ score, brokerage Anand Rathi in its IPO notice mentioned that on the higher value band, the corporate is valued at P/E (value-earnings) of 17.7 instances with a market capitalization of ₹840 crore publish problem of fairness shares. The brokerage believes that valuations of the corporate is pretty priced and suggest a ‘Subscribe-Long Term’ score to the IPO.
Advising buyers to speculate on this IPO with a medium to lengthy-time period perspective, Master Capital Services AVP (Research & Advisory) Vishnu Kant Upadhyay, mentioned, “Mukka Proteins has a rich legacy of around five decades in the Indian marine industry and is one of the pioneers in the Fishmeal Industry having set up one of India’s first steam sterilised fishmeal plants. In fiscal 2023, the industry is estimated to see a huge jump in value as well as volume. The company posted on-year growth of 130-150 per cent in value terms and 90-110 per cent in volume terms and aims to increase market share by meeting customer demand for fish meal and fish oil.”
Mukka Proteins IPO GMP Today
According to market observers, unlisted shares of Mukka Proteins Ltd are buying and selling Rs 15 greater within the gray market as in contrast with its problem value. The Rs 15 gray market premium or GMP means the gray market is anticipating a 53.57 per cent itemizing acquire from the general public problem. The GMP relies on market sentiments and retains altering.
‘Grey market premium’ signifies buyers’ readiness to pay greater than the problem value.
Mukka Proteins IPO Details
The problem is totally a recent problem of as much as 8 crore fairness shares aggregating to Rs 224 crore on the higher finish of the worth band, with no Offer For Sale (OFS) part, Manguluru-based firm mentioned.
Of the whole proceeds, Rs 120 crore will probably be used in the direction of working capital necessities and as much as Rs 10 crore for funding in its affiliate, Ento Proteins, for funding its working capital necessities. Besides, a portion will probably be used for common company functions.
Investors can bid for at least 535 fairness shares and in multiples of 535 fairness shares thereafter. Mukka Proteins is among the key gamers in India’s fish protein sector.
Furthermore, fish oil has numerous purposes, together with prescribed drugs (significantly in EPA-DHA extraction for nutraceuticals), cleaning soap making, leather-based therapy, and paint manufacturing. In the fiscal 12 months 2023, the corporate contributed between 25 per cent and 30 per cent of the Indian fish meal and fish oil trade’s income, estimated to be between Rs 3,200 crore and Rs 4,100 crore, as per a Crisil report cited within the RHP (Red Herring Prospectus).
Mukka Proteins distributes its merchandise each domestically and internationally, serving over 10 international locations similar to Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam. At current, the corporate has six manufacturing services, with two held by its overseas subsidiary, Ocean Aquatic Proteins LLC, primarily based in Oman, and 4 located in India.
Additionally, it operates 5 storage services and three mixing services strategically positioned alongside the Indian shoreline. Also, the corporate plans to broaden its manufacturing footprint by its associates, Ento Proteins Private Limited.
On a consolidated foundation, Mukka Proteins’ income from operations surged 53 per cent to Rs 1,177.12 crore in fiscal 2023 from Rs 770.50 crore in fiscal 2022, and revenue after tax jumped 84 per cent to Rs 47.52 crore in fiscal 2023, from Rs 25.82 crore in fiscal 2022. Fedex Securities Private Limited is the only real ebook-working lead supervisor to the supply. The fairness shares are proposed to be listed on the BSE and NSE.
