Mukka Proteins IPO Subscription Opens Today, Closing on March 4 with Price Band of 26 to 28; GMP Signals Potential 65% Premium upon Listing!

Mukka Proteins’ IPO subscription opens today, February 29, and closes on March 4. Preceding this, on February 28, the company garnered ₹67.20 crores from anchor investors, allocating 2,39,99,565 equity shares to them.

The IPO price band is set between ₹26 to ₹28 per equity share of face value Re 1, with a lot size of 535 equity shares and multiples thereof. The allocation of shares for the public issue is as follows: not more than 50% for qualified institutional buyers (QIBs), at least 15% for non-institutional institutional investors (NIIs), and a minimum of 35% for retail investors.

Established in 2003, Mukka Proteins has been a key player in the fish protein industry for over five decades. Its primary business involves producing and supplying fish meals to companies manufacturing aqua feed, poultry feed, and pet food. While fish meal contributes over 80% to its revenue, the company also supplies fish oil to the pharmaceutical industry and has recently ventured into the insect protein business.

This IPO comprises a 100% fresh issue of shares, ensuring that all proceeds will directly benefit the company’s operations, which is viewed positively. The funds raised will primarily be utilized to fulfill its working capital requirements.

For the fiscal year 2023, the company reported robust financials: Revenue of Rs 1,117 crore, marking a 53% YoY increase, an EBITDA margin of 8.01% compared to 7.04% YoY, and a PAT of Rs 47.5 crore, reflecting an 81% YoY growth. The strong performance in FY23 was attributed to robust global demand and reduced fish meal output from Peru, the world’s largest producer. With ongoing challenges in Peru’s raw material supply, Mukka Proteins is expected to continue its strong performance into FY24 and FY25. Additionally, the company’s expansion into China and its aggressive entry into the insect protein market are anticipated to yield favorable results in the near future.

Considering the current grey market trends, the IPO is deemed reasonably priced, with expectations of a substantial premium of around 65% upon listing.