Mukka Proteins IPO to open this week: Check dates, price band and GMP

Mukka Proteins IPO: Mukka Proteins, a leading manufacturer of fish meal, fish oil, and fish soluble paste, has unveiled the details of its Initial Public Offering (IPO), slated to open for subscription on February 29 and conclude on March 4.

The company has fixed a price band of Rs 26-28 per share for its IPO, aiming to raise Rs 224 crore through a fresh issue of up to 8 crore equity shares, with no offer for sale (OFS) component, as confirmed by the Manguluru-based firm.

Proceeds from the IPO will primarily be allocated towards fulfilling working capital requirements, with Rs 120 crore earmarked for this purpose. Additionally, the company plans to allocate up to Rs 10 crore for investment in its associate, Ento Proteins, to support its working capital needs. The remaining funds will be utilised for general corporate purposes.

Investors keen on participating in the IPO can bid for a minimum of 535 equity shares, with subsequent bids allowed in multiples of 535 shares. The minimum amount of investment required by retail investors is Rs 14,980. The minimum lot size investment for sNII is 14 lots (7,490 shares), amounting to Rs 209,720, and for bNII, it is 67 lots (35,845 shares), amounting to Rs 1,003,660.

As of February 26, 2024, Mukka Proteins IPO's grey market premium (GMP) is Rs 15, according to Investor Gain. The estimated listing price is Rs 43 (cap price + today's GMP), and a 53.6 per cent gain is expected as per the latest GMP.

Mukka Proteins holds a significant position in India's fish protein sector, with its products enjoying diverse applications across various industries, including pharmaceuticals, soap making, leather treatment, and paint manufacturing.

In the fiscal year 2023, Mukka Proteins contributed between 25 per cent and 30 per cent of the Indian fish meal and fish oil industry's revenue, estimated to be between Rs 3,200 crore and Rs 4,100 crore, according to a Crisil report cited in the Red Herring Prospectus (RHP).

The company boasts a robust distribution network, catering to over 10 countries, including Bahrain, Bangladesh, Indonesia, Malaysia, and China, among others. With six manufacturing facilities, strategically located storage and blending facilities along the Indian coastline, and plans for expansion through its associate, Ento Proteins Private Limited, Mukka Proteins is poised for continued growth and market expansion.

Financially, the company has demonstrated impressive performance, with revenue from operations surging by 53 per cent to Rs 1,177.12 crore in fiscal 2023, and profit after tax registering a significant increase of 84 per cent to Rs 47.52 crore in the same period.

Fedex Securities Private Limited has been appointed as the sole book-running lead manager for the IPO, with the equity shares proposed to be listed on both the BSE and NSE.

(With PTI inputs.)