Mukka Proteins IPO: Public Issue To Open On February 29; Share Allotment On March 5; Details Inside

Mukka Proteins, the country's largest manufacturer and exporter of fishmeal, oil, and insect meal, is all set to open its initial public offering (IPO) for subscription on February 29. The bidding window will remain open until March 4, presenting an opportunity for investors to grab a piece of the protein industry powerhouse. Here's a detailed look at what the IPO holds and the financial prowess backing Mukka Proteins.

Mukka Proteins has set a price band of Rs 26-28 per share for its IPO, with interested investors able to bid for a minimum of 535 equity shares in one lot and in multiples thereafter. The company aims to raise a substantial Rs 224 crore through its primary stake sale, which consists entirely of a fresh share sale of 8 crore equity shares.

To ensure a fair distribution, the allocation to anchor investors will be completed on February 28. Qualified Institutional Investors (QIBs) have a 50% share of the issue, while non-institutional investors (NIIs) get 15%, and retail investors secure 35% of the net issue reserved for them.

Mukka Proteins has showcased a healthy financial performance over the last three years. The company's revenue from operations has seen a steady ascent, growing by 28% in FY22 and an even more remarkable 53% in FY23. At the end of FY23, the company's revenue from operations stood at Rs 1,177 crore, with Rs 606 crore in revenues achieved in the first half of FY24.

Furthermore, the company's EBITDA exhibited substantial growth, clocking in at 22% and 40% in FY22 and FY23, respectively. For FY23, the EBITDA reached Rs 94 crore, and in the first half of FY24, it stands at Rs 61 crore. Notably, Mukka Protein's EBITDA margins have shown consistent improvement, growing from 5.27% in FY21 to 10.11% in the first half of FY24.

Profits for the company have surged, witnessing a remarkable 136% and 85% growth in FY22 and FY23, respectively. On track to double its profits in FY24, Mukka Proteins is establishing itself as a formidable player in the Indian protein sector.

Mukka Proteins plans to utilize the net proceeds from the IPO to expand its manufacturing capacity through its affiliate, Ento Proteins. Ento Proteins specializes in producing insect meals from food waste and has been recognized for its efforts, winning the Network 18 Sustainability Award under the circularity category for 2022. In addition to expanding manufacturing capabilities, funds will also be allocated towards working capital requirements and general corporate purposes.

Mukka Proteins currently holds the title of the largest manufacturer of fishmeal, oil, and insect meal in India. The company prides itself on being the leading exporter of fishmeal, with a presence in over 15 countries. Recognized for its export performance, Mukka Proteins has consistently been awarded by the Marine Products Export Development Authority (MPEDA).

According to a CRISIL report cited in the RHP, Mukka Proteins contributed significantly to the Indian fish meal and fish oil industry's revenue, accounting for 25% to 30% in the fiscal year 2023. This industry is estimated to be valued between Rs 3,200 crore and Rs 4,100 crore.

Fedex Securities is the designated merchant banker overseeing the IPO process, while Cameo Corporate Services takes on the role of registrar. Allotment of shares is scheduled for March 5, with the initiation of refunds on March 6. The listing on the stock exchanges is tentatively set for March 7.

With a robust financial track record, growth plans, and a dominant position in the market, Mukka Proteins' IPO is generating considerable buzz in financial circles. Investors are eager to see how this company will fare in the public domain.