Mukka Proteins IPO:
Mukka Proteins Ltd, a prominent player in the fishmeal industry, is witnessing an exceptional response to its Initial Public Offering (IPO), with subscription figures soaring to unprecedented levels. The IPO, valued at ₹224 crore, comprises a fresh issue of 8,00,00,000 equity shares with a face value of Re 1 per share, with no offer-for-sale component.
The IPO, which opened for subscription on February 29 and is set to close on March 4, has garnered immense interest from investors across all categories. Within the first two days of its opening, the subscription status stood at 6.97 times on day 2, following a robust initial response of 2.47 times on the first day.
With today marking the final day for applications, data from the Bombay Stock Exchange (BSE) reveals that the overall subscription status has surged to a staggering 136.12 times, as of 16:24 IST. This overwhelming demand underscores the confidence investors have in Mukka Proteins’ growth prospects and market position.
The IPO allocation has been structured to reserve not more than 50% of the shares for Qualified Institutional Buyers (QIBs), while allocating not less than 15% for Non-Institutional Investors (NIIs) and a minimum of 35% for retail investors.
Mukka Proteins Ltd specializes in the manufacture and sale of fish meal, fish oil, and fish soluble paste, essential components in aqua feed, poultry feed, and pet food production. The company’s commitment to quality and innovation has enabled it to maintain a strong market presence and a diversified product portfolio.
Proceeds from the IPO, as outlined in the red herring prospectus (RHP), are earmarked for general corporate purposes, investment in their associate, Ento Proteins Private Limited, and fulfilling the company’s working capital requirements. Notably, three of the company’s promoter directors, Kalandan Mohammed Haris, Kalandan Mohammed Arif, and Kalandan Mohammed Althaf, play active roles in driving business growth.
The registrar for the Mukka Proteins IPO is Cameo Corporate Services Limited, with Fedex Securities Pvt Ltd serving as the book running lead manager. Analysts have compared Mukka Proteins with listed peers such as Avanti Feeds Ltd, Godrej Agrovet Ltd, Zeal Aqua Ltd, and Waterbase Ltd, highlighting the company’s robust financial performance and growth trajectory.
According to brokerage firms such as BP Wealth and Master Capital Services Ltd, Mukka Proteins presents a compelling investment opportunity in the fish protein industry, given its strong market position and diversified product portfolio. Both brokerages have recommended a “Subscribe” rating for the issue, citing favorable valuations and growth prospects.
Moreover, the grey market premium (GMP) for Mukka Proteins IPO stands at +25, indicating a significant premium over the IPO price band. Analysts predict a strong listing for Mukka Proteins shares, with an estimated listing price of ₹53 apiece, representing an 89.29% increase over the IPO price.
Investors, enthused by the company’s growth potential and market dynamics, are advised to consider Mukka Proteins IPO for medium to long-term investment horizons, given its strategic initiatives and expansion plans in domestic and international markets.