Mukka Proteins Secures Funding Boost from Anchor Investors Ahead of IPO Launch

Mukka Proteins, a leading manufacturer of fish meal, fish oil, and fish soluble paste, successfully raised a substantial amount of capital from anchor investors ahead of its much-anticipated initial public offering (IPO). The company allotted 2.39 crore equity shares to six prominent funds at a price of Rs 28 per share, as disclosed in a circular uploaded on the BSE website.

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Anchor Investors and Subscription Details

The anchor book for Mukka Proteins' IPO attracted participation from several renowned investment funds, including Neomile Growth Fund, Saint Capital Fund, Eminence Global Fund, and Elara India Opportunities Fund. The company's maiden public issue is set to open for subscription on February 29 and will conclude on March 4. Investors will have the opportunity to bid for shares within a price range of Rs 26 to Rs 28 per share.

IPO Details and Proceeds Utilization

Mukka Proteins' IPO consists entirely of a fresh issue of up to 8 crore equity shares, aggregating to Rs 224 crore at the upper end of the price band. Notably, there is no Offer For Sale (OFS) component in this offering. The company plans to utilize the proceeds from the IPO strategically. A significant portion, amounting to Rs 120 crore, will be allocated towards meeting working capital requirements. Additionally, up to Rs 10 crore will be invested in its associate, Ento Proteins, to support its working capital needs. The remaining funds will be utilized for general corporate purposes.

Market Position and Industry Contribution

Mukka Proteins holds a prominent position in India's fish protein sector. The company's fish oil, in particular, finds diverse applications in various industries, including pharmaceuticals, particularly in the extraction of EPA-DHA for nutraceuticals, soap making, leather treatment, and paint manufacturing. According to a Crisil report cited in the Red Herring Prospectus (RHP), Mukka Proteins contributed a substantial 25% to 30% of the Indian fish meal and fish oil industry's revenue in the fiscal year 2023. This revenue is estimated to be between Rs 3,200 crore and Rs 4,100 crore.

Global Presence and Expansion Plans

Mukka Proteins has established a strong global presence, distributing its products to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam. The company currently operates six manufacturing facilities, two of which are held through its foreign subsidiary, Ocean Aquatic Proteins LLC, based in Oman, while the remaining four are located in India. Additionally, Mukka Proteins operates five storage facilities and three blending facilities strategically positioned along the Indian coastline. The company also has plans to expand its manufacturing footprint through its associate, Ento Proteins Private Limited.

Financial Performance and IPO Details

Mukka Proteins has demonstrated impressive financial growth. On a consolidated basis, the company's revenue from operations surged by 53% to Rs 1,177.12 crore in the fiscal year 2023, compared to Rs 770.50 crore in the fiscal year 2022. Similarly, profit after tax witnessed a significant jump of 84%, rising from Rs 25.82 crore in the fiscal year 2022 to Rs 47.52 crore in the fiscal year 2023. Fedex Securities Private Limited serves as the sole book-running lead manager to the offer. Upon successful completion of the IPO, the equity shares of Mukka Proteins are proposed to be listed on both the BSE and NSE.