Mukka Proteins is coming up with an IPO to issue 8 crores of fresh shares to the public. The company will utilize the raised funds to fund its working capital requirements, invest in Ento Proteins'(subsidiary’s) working capital, and for general corporate purposes.
Mukka Proteins IPO – Important Details
| Mukka Proteins IPO Date | February 29, 2024 to March 4, 2024 |
| Mukka Proteins IPO Listing Date | March 7, 2024 |
| Mukka Proteins IPO Price | INR 26 to 28 per share |
| Mukka Proteins IPO Lot Size | 535 Shares |
| Mukka Proteins IPO Total Issue Size | INR 224.00 Cr |
| Mukka Proteins IPO Basis of Allotment | March 5, 2024 |
| Mukka Proteins IPO Initiation of Refunds | March 6, 2024 |
| Mukka Proteins IPO Credit of Shares to Demat | March 6, 2024 |
| Mukka Proteins IPO Issue Type | Book Built Issue IPO |
| Mukka Proteins IPO Listing At | BSE, NSE |
Mukka Proteins IPO- Company Profile
Mukka Protein is one of the key players in the Fish Protein industry in India. They are also amongst the first few Indian companies to have commercialized insect meal and insect oil (collectively “Insect Protein”) as an ingredient for aqua feed, animal feed, and pet food. Animal Protein now includes Fish and Insect Protein.
The company manufactures fish protein products, offering fish meal, oil, and soluble paste. Fish protein products are vital in the aqua, poultry, and pet food industries. It also serves pharmaceuticals, soap, tanneries, and paint sectors. Our company exports products to more than ten countries worldwide, including Bahrain, Bangladesh, China, Indonesia, Malaysia, Myanmar, the Philippines, Saudi Arabia, South Korea, Taiwan, and Vietnam.
With over five decades of success, the company’s promoters are industry pioneers. Mukka Proteins, a leader in the Fish Protein sector, introduced the steam-dried process for fish meal manufacturing in India, showcasing innovation and expertise.
Mukka Proteins IPO – Fundamental Analysis
Mukka Proteins’ financial analysis highlights consistent revenue growth, fluctuating profitability, and improved metrics like RoNW, EPS, and declining Debt-Equity Ratio, suggesting potential strengths and areas for investor consideration.
Revenue Growth:
Over the last three fiscal years, consistent revenue growth has increased from ₹5,492.48 million in 2020 to ₹7,705.03 million in 2022. This signifies a healthy trend and a positive business trajectory.
Profitability:
The company’s Profit and Loss After Tax have displayed volatility, dropping from ₹135.74 million in 2020 to ₹110.10 million in 2021 but rebounding significantly to ₹258.19 million in 2022. This erratic pattern might indicate some instability.
Return on Net Worth (RoNW):
Although the RoNW has fluctuated, there is an upward trend, reaching 27.75% in 2022, indicating improved efficiency in utilizing shareholders’ funds for generating profits.
Earnings per Share (EPS):
The diluted EPS has seen an increase from ₹0.60 in 2020 to ₹1.10 in 2022, indicating a potential growth in earnings per outstanding share.
Debt-Equity Ratio:
The Debt-Equity ratio has shown a declining trend over the years, decreasing from 242.46% in 2020 to 154.84% in 2022. This demonstrates a reduced financial leverage and a healthier balance between debt and equity.
Net Asset Value (NAV):
The Net Asset Value has consistently risen from 2.56 in 2020 to 3.97 in 2022, indicating a growth in the company’s assets per share.
Gross Profit Margin:
The Gross Profit Margin has also improved over the years, reaching 17.62% in 2022 from 13.91% in 2020, indicating better operational efficiency.
Mukka Proteins IPO Financial Information
| Particular | As at 31 March 2020 | As at 31 March 2021 | As at 31 March 2022 |
| Revenue (₹ in Million) | 5,492.48 | 6,038.34 | 7,705.03 |
| Equity (₹ in Million) | 577.51 | 690.58 | 1,030.78 |
| Expenses (₹ in Million) | 5,370.03 | 5,983.17 | 7,411.77 |
| Profit and Loss After Tax (₹ in Million) | 135.74 | 110.10 | 258.19 |
| RoNW (%) | 23.40 | 13.91 | 27.75 |
| Diluted EPS only (₹) | 0.60 | 0.41 | 1.10 |
| Total Assets (in million) | 2,931.15 | 3,539.29 | 3,922.96 |
| Total Liabilities (in million) | 2,353.64 | 2,848.72 | 2,892.18 |
| Net Asset Value (NAV) | 2.56 | 2.93 | 3.97 |
| Debt Equity Ratio | 242.46% | 224.46% | 154.84% |
| Gross Profit Margin (%) | 13.91 | 14.92 | 17.62 |
Mukka Proteins Limited IPO Peer Comparison
No listed companies in India are comparable to the business that Mukka Proteins is engaged in. Hence, providing an industry comparison concerning the company is impossible.
Mukka Proteins Ltd IPO Objective
Mukka Proteins aims to utilize INR 120 crores from Net Proceeds for its working capital needs and business growth. Plans are underway to invest in subsidiary EPPL for insect protein manufacturing and other general corporate purposes.
1. Funding working capital requirements of the company: Mukka Proteins proposes to utilize up to INR 120 crores from the Net Proceeds to meet its capital requirements. The company requires additional funds to commensurate the growth in the business
2. Invest in Ento Proteins’ working capital: The company, operating through subsidiaries like EPPL (Ento Proteins Private Limited), manufactures insect protein. EPPL, in which the company holds a 50% stake, produces insect meals from BSF larvae. To support EPPL’s working capital, the company plans to invest INR 10 crores of Net Proceeds, potentially making EPPL a subsidiary.
3. General Corporate Purposes: The Company plans to deploy the balance funds towards the general corporate goal, which is not limited to meeting expenses incurred in the ordinary course of business, such as day-to-day expenses, working capital needs, strategic initiatives, growth opportunities, marketing, brand building, contingencies, lease payments, consultant fees, fixed asset acquisition, business development, and other necessities.
Mukka Proteins Limited IPO Risks And Challenges
Mukka Proteins Limited faces legal risks, weather-related challenges impacting raw material procurement, facility operation concerns, and dependence on timely approvals and resources for expansion and operations.
- The Company, some of its subsidiaries, promoters, directors and group companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on the business, results of operations and financial condition.
- The Company’s weather-sensitive operations face risks from cyclonic storms, unpredictable rainfall, and potential El Niño effects, impacting raw material procurement and processing. Recovery of the resilient Indian oil sardine is expected post-decline.
- Mukka Protein strategically locates manufacturing facilities along the coastline for raw fish access. Capacity underutilization or inability to operate facilities could adversely impact business. Expansion success depends on timely regulatory approvals and critical raw material availability. Electricity, fuel, and water shortages may disrupt operations, necessitating timely and cost-effective alternatives to avoid adverse effects on business, financial condition, and results.
Mukka Proteins Limited IPO – Industry & Market Potential
The Indian government’s PMMSY, under the Aatmanirbhar Bharat Abhiyan, aims to boost India’s fisheries sector sustainably by expanding fish production, modernizing the value chain, doubling incomes, and ensuring social and economic security for fishers alongside a robust regulatory framework.
Fish meal and fish oil are rich sources of protein and essential fatty acids (EPA and DHA), respectively, but also contain an optimal mix of vital nutrients and are easily digestible. Fish meal and fish oil are valuable and essential ingredients in the feed industry. Fish meal and fish oil are in high demand in the aquaculture industry, leading to increased prices.
IFIF (International Feed Industry Federation) notes that global animal feed industry growth is driven by developing countries like Brazil, China, India, Latin America, and the Caribbean regions. The demand for animal protein will continue to rise due to dietary preferences over the past decade.
Mukka Proteins Limited IPO – Type of Offer
Mukka Proteins is preparing to launch an IPO comprising a fresh issue of 8 crores of equity shares.
Mukka Proteins Limited IPO Offer Size
Mukka Proteins is set to release an IPO, offering 8 crore fresh shares to the public. The proceeds will be allocated to support working capital needs, invest in the subsidiary Ento Proteins’ working capital, and for general corporate purposes.
Mukka Proteins Ltd IPO Allotment Structure
Mukka Proteins Limited’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Mukka Proteins IPO?
To apply for the Mukka Proteins Limited through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Mukka Proteins Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Mukka Proteins Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Mukka Proteins IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Mukka Proteins Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Mukka Proteins Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Mukka Proteins Limited IPO:
Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Mukka Proteins Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Mukka Proteins IPO Offer Registrar
The registrar for the Mukka Proteins Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Cameo Corporate Services Limited
Subramanian Building, 5th Floor
No. 1 Club House Road
Chennai -600 002, India
Tel: +914440020700(5 lines)
Email: [email protected]
Website: www.cameoindia.com
Mukka Proteins Limited IPO FAQs
1. What is the allotment date of Mukka Proteins Limited IPO?
The allotment date of Mukka Proteins Limited IPO is March 5, 2024.
2. What is the price band of Mukka Proteins Limited’s IPO?
The price band of Mukka Proteins Limited IPO is INR 26 to 28 per share.
3. What is the size of Mukka Proteins Limited’s IPO?
Mukka Proteins Limited is preparing to launch an initial public offering (IPO) involving the insurance of 80 million new equity shares to the public. The Company will use the funds raised to support working capital requirements and address general corporate needs.
4. What is the listing date of Mukka Proteins Limited’s IPO?
The listing date of Mukka Proteins Limited IPO is March 7, 2024.
