Mukka Proteins IPO To Launch On Feb 29, Click Here To See Price Band And Other Details

The firm said that it intends to use the proceeds worth Rs 120 crore from the issue towards working capital requirements and about Rs 10 crore for investing in the associate entity, Ento Proteins

Investors would be allowed to place bids for a minimum of 535 equity shares and in multiples of the said amount thereafter

Source : Getty

Mukka Proteins announced on Monday that it will open its initial public offering (IPO) for bidding at a price band of Rs 26 to Rs 28 per share. The IPO of the fish meal, oil, and soluble paste manufacturer will be available for subscription on February 29, 2024 till March 4. 

The firm’s maiden issue worth Rs 224 crore is made up of a fresh issue of up to 8 crore equity shares, without an Offer-for-Sale (OFS) component, it said, reported PTI. The Mangaluru-based firm further stated that it intends to use the proceeds worth Rs 120 crore from the issue towards working capital requirements and about Rs 10 crore for investing in the associate entity, Ento Proteins. This investment in the associate firm would be utilised to see to the working capital requirements of the firm. 

Additionally, the firm will utilise some proceeds towards general corporate purposes. Investors would be allowed to place bids for a minimum of 535 equity shares and in multiples of the said amount thereafter. 

The company accounted for 25 per cent to 30 per cent of the Indian fish meal and fish oil industry’s revenue in the 2022-23 fiscal year, coming up in the range of Rs 3,200 crore and Rs 4,100 crore, a CRISIL report cited in the Red Herring Prospectus revealed. The issue is being managed by Fedex Securities Private Limited as the sole book-running lead manager.

Mukka Proteins provides its products in about 10 countries, domestic and international, like Bahrain, Bangladesh, Indonesia, Malaysia, Chile, Myanmar, China, Philippines, South Korea, Saudi Arabia, Vietnam, Taiwan, and Oman. Currently, the firm works out of six manufacturing facilities, out of which two are held by its foreign subsidiary in Oman, Ocean Aquatic Proteins LLC, and four of them based in India. It also owns five storage facilities and three blending facilities. 

The firm is planning to enhance its footprint in manufacturing via its associates, Ento Proteins. The revenue from operations of the company climbed 53 per cent to touch Rs 1,177.12 crore in FY23, against Rs 770.50 crore reported in the preceding fiscal year. The profit after tax for the company soared 84 per cent to touch Rs 47.52 crore in FY23, compared to Rs 25.82 crore in the 2021-22 fiscal year.