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The IPO price range for Mukka Proteins has been set at ₹26 to ₹28 per share.
Mukka Proteins IPO: Pricing, Allocation, and Company Overview
The price range for the Mukka Proteins IPO is set at ₹26 to ₹28 per share. Subscription for the IPO begins on Thursday, February 29, and ends on Monday, March 4. Allocation to anchor investors will occur on Wednesday, February 28.
The lowest price for the shares is 26 times their face value, while the highest price is 28 times the face value. Based on the diluted EPS for fiscal 2023, the price-to-earnings ratio at the lowest price is 13 times, and at the highest price is 14 times. The initial lot size for Mukka Proteins IPO is 535 equity shares, with increments of 535 shares thereafter.
Mukka Proteins IPO has allocated 50% of shares to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors.
The IPO is valued at ₹224 crore and includes 8,00,00,000 new equity shares priced at Re 1 each. It consists solely of new shares, with no existing shares being sold.
Proceeds from the IPO, outlined in the red herring prospectus (RHP), will be used for general corporate purposes, investment in their associate Ento Proteins Private Limited, and meeting working capital needs.
The company’s founders are Kalandan Mohammed Althaf, and Kalandan Mohammed Haris.
According to the company’s RHP, its comparable companies include Avanti Feeds Ltd (P/E ratio: 25), Godrej Agrovet Ltd (P/E ratio: 33.23), Zeal Aqua Ltd (P/E ratio: 20.63), and Waterbase Ltd.
The company produces and sells fish meal, fish oil, and fish soluble paste, essential for making aqua feed (for fish and prawns), poultry feed (for broilers and layers), and pet food (for dogs and cats). It specializes in fish protein products. Additionally, fish oil finds applications in soap manufacturing, leather tanning, paint, and pharmaceuticals (omega-3 supplements and other health products derived from fish oil are increasingly popular as nutritious dietary supplements).
The company sells its products to over ten countries, including China, Saudi Arabia, South Korea, Oman, Taiwan, Vietnam, Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, and Taiwan, as well as locally.
Currently, the company has six production facilities, with four in India and two owned by its foreign subsidiary, Ocean Aquatic Proteins LLC, based in Oman. It also operates five storage facilities and three blending facilities in India.
From March 31, 2022, to March 31, 2023, Mukka Proteins Limited’s profit after tax (PAT) increased by 84.07%, while revenue rose by 52.52%.
The allotment of shares for Mukka Proteins IPO is expected to be finalized on Tuesday, March 5. Refunds will be processed on Wednesday, March 6, and shares will be credited to the demat accounts of allottees on the same day as refunds. Mukka Proteins’ share price is anticipated to be listed on BSE and NSE on Thursday, March 7.
