Mukka Proteins IPO began accepting subscriptions on Thursday, February 29th, and today, Monday, March 4th, marks the deadline for those interested in applying. The IPO garnered positive responses during its initial two days, with a subscription status of 6.97 times on the second day and 2.47 times on the first day. The public issue has allocated up to 50% of shares for QIBs, a minimum of 15% for NIIs, and at least 35% for retail investors.
Mukka Proteins Ltd produces and markets fish meal, fish oil, and fish soluble paste, essential ingredients for aqua feed (for fish and prawns), poultry feed (for broilers and layers), and pet food (for dogs and cats). The price range for Mukka Proteins’ IPO is set at ₹26 to ₹28 per equity share with a face value of Re 1. The IPO lot size for Mukka Proteins is 535 equity shares, with additional shares available in multiples of 535 thereafter.
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Mukka Proteins IPO 2024 Details
Mukka Proteins IPO is a book built issue of Rs 224.00 crores. The issue is entirely a fresh issue of 8 crore shares. Mukka Proteins IPO bidding started from February 29, 2024 and ended on March 4, 2024. The allotment for Mukka Proteins IPO was finalized on Tuesday, March 5, 2024. The shares got listed on BSE, NSE on March 7, 2024. Mukka Proteins IPO price band is set at ₹26 to ₹28 per share. The minimum lot size for an application is 535 Shares. The minimum amount of investment required by retail investors is ₹14,980. The minimum lot size investment for sNII is 14 lots (7,490 shares), amounting to ₹209,720, and for bNII, it is 67 lots (35,845 shares), amounting to ₹1,003,660.
Mukka Proteins IPO Overview
IPO Date
February 29, 2024 to March 4, 2024
Listing Date
March 7, 2024
Face Value
₹1 per share
Price Band
₹26 to ₹28 per share
Lot Size
535 Shares
Total Issue Size
80,000,000 shares
(aggregating up to ₹224.00 Cr)
Fresh Issue
80,000,000 shares
(aggregating up to ₹224.00 Cr)
Issue Type
Book Built Issue IPO
Listing At
BSE, NSE
Share holding pre issue
220,000,000
Share holding post issue
300,000,000
Mukka Proteins IPO Reservation
Mukka Proteins IPO offers 80,000,000 shares. 16,000,435 (20.00%) to QIB, 12,000,000 (15.00%) to NII, 28,000,000 (35.00%) to RII and 23,999,565 (30.00%) to Anchor investors. 52,336 RIIs will receive minimum 535 shares and 534 (sNII) and 1,068 (bNII) will receive minimum 7,490 shares. (in case of oversubscription)
Investor Category
Shares Offered
Maximum Allottees
Anchor Investor Shares Offered
23,999,565 (30.00%)
NA
QIB Shares Offered
16,000,435 (20.00%)
NA
NII (HNI) Shares Offered
12,000,000 (15.00%)
bNII > ₹10L
8,000,000 (10.00%)
1,068
sNII < ₹10L
4,000,000 (5.00%)
534
Retail Shares Offered
28,000,000 (35.00%)
52,336
Total Shares Offered
80,000,000 (100%)
Mukka Proteins IPO Anchor Investors Details
Mukka Proteins IPO raises Rs 67.20 crore from anchor investors. Mukka Proteins IPO Anchor bid date is February 28, 2024.
Bid Date
February 28, 2024
Shares Offered
23,999,565
Anchor Portion Size (In Cr.)
67.20
Anchor lock-in period end date for 50% shares (30 Days)
April 4, 2024
Anchor lock-in period end date for remaining shares (90 Days)
June 3, 2024
Mukka Proteins IPO subscription status
The demand for Mukka Proteins IPO on the third day remains high, with an overall subscription status of 129.02 times as of 15:21 IST, according to BSE data. Retail investors have subscribed 53.01 times, Non-Institutional Investors (NII) 242.74 times, and Qualified Institutional Buyers (QIB) 176.75 times. Bids have been received for 7,22,52,29,035 shares against 5,60,00,435 shares available as of 15:21 IST, based on BSE data.
Mukka Proteins IPO Details
Mukka Proteins IPO, valued at ₹224 crore, consists of a fresh issue of 8,00,00,000 equity shares with a face value of Re 1, with no offer-for-sale element. The company plans to utilize the net proceeds from the IPO, as outlined in the red herring prospectus (RHP), for general corporate purposes, investment in their subsidiary, Ento Proteins Private Limited, and the company’s working capital needs. The business involves three promoter directors, namely Kalandan Mohammed Haris, Kalandan Mohammed Arif, and Kalandan Mohammed Althaf.
Cameo Corporate Services Limited is the registrar for the Mukka Proteins IPO, with Fedex Securities Pvt Ltd serving as the book running lead manager. According to the company’s RHP, its comparable companies include Avanti Feeds Ltd (P/E of 25), Godrej Agrovet Ltd (P/E of 33.23), Zeal Aqua Ltd (P/E of 20.63), and Waterbase Ltd. Mukka Proteins Limited saw an 84.07% increase in profit after tax (PAT) and a 52.52% rise in revenue between March 31, 2022, and March 31, 2023.
Mukka Proteins IPO GMP stands at +25, implying the stock is trading at a ₹25 premium in the grey market, as per investorgain.com. With the upper end of the IPO price band and the current grey market premium considered, Mukka Proteins’ estimated listing price is projected at ₹53 per share, reflecting an 89.29% increase from the IPO price of ₹28. Today’s IPO GMP, based on the grey market activities of the past 28 sessions, anticipates a robust listing. Analysts at investorgain.com report the lowest GMP at ₹0 and the highest at ₹29. The ‘Grey market premium’ showcases investors’ willingness to pay above the issue price.
Mukka Proteins IPO 2024 Images
Mukka Proteins IPO Review
BP Wealth
The company has a history of maintaining consistent revenue growth, with a 39.3% CAGR from FY21 to FY23, as stated by the brokerage. Factors such as high entry barriers, stable financial performance, and innovative products have contributed to the company’s successful expansion. Mukka Proteins Ltd. is seen as a compelling investment opportunity in the fish protein sector due to its strong market position, diverse product range, and global presence. The brokerage suggests a “SUBSCRIBE” rating for the issue, which is considered fairly valued at a P/E of 9.3x based on FY24 earnings.
Master Capital Services Ltd
Mukka Proteins, a trailblazer in the fishmeal sector, is known for establishing one of India’s earliest steam-sterilized fishmeal mills. With a rich fifty-year history in the Indian marine industry, the company is poised for significant growth in both volume and value in fiscal 2023. Its objective is to expand market share by meeting the growing customer demand for fish meal and fish oil. Year-on-year growth has been impressive, with reported increases of 130–150% in value and 90–110% in volume. The company is venturing into insect-based nutrition, manufacturing and selling insect meal and oil through EPPL, a specialist in Insect Proteins. Additionally, it aims to strengthen its presence in established export markets like China, Chile, and Japan while exploring new market opportunities. The brokerage suggests that investors consider this IPO for potential medium to long-term gains.
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Mukka Proteins IPO subscribed 60x so far on last day; NII portion booked about 150 times
The Mangaluru-based Mukka Proteins is selling its shares in the price band of Rs 26-28 apiece. Investors can apply for a minimum of 535 shares and its multiples thereafter. Mukka Proteins’ initial public offering (IPO) received a positive reception from investors throughout the final day of bidding. The subscription rate was 2.47 times on the first day and increased to 6.96 times by the end of the second day. The company, located in Mangaluru, is offering shares priced between Rs 26-28 each. Interested investors can apply for a minimum of 535 shares and in multiples of that amount. The IPO aims to raise Rs 224 crore through the sale of 8 crore fresh equity shares.
As per the data, investors bid for 335,654,1850 equity shares, equivalent to 59.94 times the 560,004,35 equity shares available for subscription by 1:40 pm on Monday, March 4th. The bidding for this issue began on Thursday, February 29th, and ends today. Non-institutional investors subscribed 148.99 times, while retail investors subscribed 38.15 times. Qualified institutional bidders (QIBs) received bids 31.27 times the allocated quota by the same deadline.
Mukka Proteins, established in March 2003, specializes in producing fish protein items such as fish meal, fish oil, and fish soluble paste. These products are essential for aqua feed in fish and shrimp farming, as well as poultry feed for broilers and layers, and pet food for dogs and cats. The grey market premium for Mukka Proteins has significantly increased since its debut, with the company now having a premium of Rs 28-29 in the unofficial market. This indicates a listing pop of over 100% for investors. Initially, the grey market premium was around Rs 15-17 when the offering was first announced.
About Mukka Proteins
Analysts have a generally positive outlook due to the increasing demand for fish proteins and fish oil, expansion plans in multiple countries, and strong financial performance. However, concerns have been raised regarding reliance on key players and potential challenges from policy and licensing changes. Mukka Proteins is a leading company in the manufacturing and marketing of fish meal, fish oil, and related products, operating both domestically and internationally. According to Anand Rathi Research, the company exports to a range of countries including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.
The company holds approximately 25-30% of the market share in India, which consists of two-thirds coastal land. At the higher price range, the company is valued at a P/E ratio of 17.7 times, with a market capitalization of Rs 840 crore after issuing equity shares. We consider the company’s valuations to be reasonable and suggest a ‘subscribe for long term’ recommendation for the IPO. Mukka Proteins secured Rs 67.2 crore from anchor investors before its IPO by offering 2.39 crore shares at Rs 28 each. The company has set aside 50% of the shares for qualified institutional bidders (QIBs), allotted 15% to non-institutional investors, and earmarked the remaining 35% for retail investors.
Mukka Proteins has an extensive history spanning approximately five decades in the Indian Marine Industry and is recognized as a trailblazer in the fishmeal sector for establishing one of India’s earliest steam sterilised fishmeal plants. Master Capital Services mentioned that the industry is anticipated to experience significant growth in value and volume in fiscal 2023. The company achieved a year-on-year growth of 130-150% in value and 90-110% in volume, with plans to enhance its market share by catering to the rising demand for fish meal and fish oil. Additionally, it has identified promising opportunities in insect-based nutrition, venturing into the production and sale of insect meal and insect oil, as indicated by its ‘subscribe’ rating. Fedex Securities is the exclusive book running lead manager for the Mukka Proteins IPO, with Cameo Corporate Services serving as the registrar. The company’s shares are expected to be listed on both BSE and NSE on March 7, Thursday.
Mukka Proteins Limited Stock Quote & Charts
Open: ₹38.20
High – Low: ₹39.80 – ₹38.15
Previous Close: ₹40.15
Total Traded Value: 23,55,291
52 Weeks High: ₹44.00 (Mar 07, 2024)
52 Weeks Low: ₹38.15 (Mar 12, 2024)
Updated On: Mar 12, 2024 4:00 PM
Mukka Proteins Limited Financial Information (Restated Consolidated)
Mukka Proteins Limited’s revenue increased by 52.52% and profit after tax (PAT) rose by 84.07% between the financial year ending with March 31
Period Ended
30 Sep 2023
31 Mar 2023
31 Mar 2022
31 Mar 2021
Assets
641.18
575.16
392.30
353.93
Revenue
612.88
1,183.80
776.15
609.95
Profit After Tax
32.98
47.53
25.82
11.01
Net Worth
159.11
128.92
87.25
64.54
Reserves and Surplus
144.92
112.57
68.51
60.80
Total Borrowing
317.73
254.83
173.50
159.19
Key Performance Indicator
The market capitalization of Mukka Proteins IPO is Rs 840 Cr.
KPI
Values
ROE
36.71%
ROCE
17.62%
Debt/Equity
1.64
RoNW
34.19%
P/BV
4.78
Mukka Proteins IPO Apply
MPL is a numero uno company in fish meals, fish oils and related allied products with 25-30% market share domestically. It also has good demand in global markets. The company has posted growth in its top and bottom lines for the reported periods. Based on FY24 annualized earnings, the issue appears reasonably priced. The company may attract first mover fancy post listing. Investor (who have no reservation for the segments) may lap it up for the medium to long term rewards.
