Today marks the commencement of the Mukka Proteins IPO, scheduled to conclude on March 4. The price range for each share is established at ₹26 to ₹28, with a lot size of 535 shares. The IPO, valued at ₹224 crore, involves the issuance of 8,00,00,000 equity shares, with a portion reserved for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and retail investors in accordance with SEBI regulations.
Today, on Thursday, February 29, the Mukka Proteins IPO officially opens for subscription and will remain open until Monday, March 4. Preceding its launch, the IPO garnered significant interest from anchor investors, raising ₹67.20 crores on Wednesday, February 28. The company disclosed to the exchanges that it allocated a total of 2,39,99,565 equity shares to anchor investors as part of its initial offering.
The price band for the Mukka Proteins IPO has been established within the range of ₹26 to ₹28 per equity share, each having a face value of Re 1. The lot size for the IPO stands at 535 equity shares, with subsequent multiples available in increments of 535 equity shares thereafter.
In the Mukka Proteins IPO, a portion of the shares in the public issue has been reserved as follows: up to 50% for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and a minimum of 35% for retail investors.
Mukka Proteins Ltd specializes in the manufacturing and distribution of essential products like fish meal, fish oil, and fish soluble paste, crucial ingredients utilized in the production of aqua feed (for fish and prawns), poultry feed (for grill and layer), and pet food (dog and cat chow).
The company is steered by three prominent promoter directors: Kalandan Mohammed Haris, Kalandan Mohammed Arif, and Kalandan Mohammed Althaf, who actively contribute to its operations.
According to the company’s RHP (Red Herring Prospectus), its listed counterparts include Avanti Feeds Ltd (P/E: 25), Godrej Agrovet Ltd (P/E: 33.23), Zeal Aqua Ltd (P/E: 20.63), and Waterbase Ltd.
Notably, Mukka Proteins Limited witnessed significant growth between March 31, 2022, and March 31, 2023, with its profit after tax (PAT) surging by 84.07% and revenue escalating by 52.52%.
The Mukka Proteins IPO, valued at ₹224 crore, consists solely of a fresh issue of 8,00,00,000 equity shares with a face value of Re 1 each. There is no offer-for-sale component included in this IPO.
As outlined in the red herring prospectus (RHP), the company plans to utilize the net proceeds from the IPO for various purposes including general corporate expenses, investment in their associate company Ento Proteins Private Limited, meeting working capital needs, and other related expenditures.
Cameo Corporate Services Limited is appointed as the registrar for the Mukka Proteins IPO, while Fedex Securities Pvt Ltd serves as the book running lead manager.
As of today, the grey market premium (GMP) for the Mukka Proteins IPO stands at +15. This suggests that Mukka Proteins shares are trading at a premium of ₹15 in the grey market, according to investorgain.com.
Taking into account the upper end of the IPO price band and the current grey market premium, the estimated listing price for Mukka Proteins shares is projected to be ₹43 each, representing a 53.57% increase over the IPO price of ₹28.
Analysis of the grey market activities over the past 24 sessions indicates an upward trend in the IPO GMP, signaling anticipation for a strong listing. The GMP has ranged from a low of ₹0 to a high of ₹17, as reported by investorgain.com analysts.
The “grey market premium” serves as an indicator of investors’ willingness to pay more than the issue price for IPO shares.
According to Dilip Davda, a contributing editor at Chittorgarh, Mukka Proteins is a leading company in the fish meal, fish oil, and related allied products sector, boasting a 25-30% market share domestically and enjoying strong demand in global markets as well. The company has demonstrated growth in both its top and bottom lines for the reported periods. Assessing the FY24 annualized earnings, the IPO seems reasonably priced. Davda also suggests that the company might garner investor interest as a first mover post-listing. Investors with no reservations for the segments covered may consider investing in Mukka Proteins for potential medium to long-term rewards.
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