On Day 2, Mukka Proteins Limited IPO witnessed a diverse subscription pattern, with varying levels of interest across investor categories. Qualified Institutional Buyers (QIBs) showed moderate interest with a subscription rate of 1.86 times. Non-Institutional Investors displayed strong enthusiasm, subscribing 6.22 times. Remarkably, Retail Individual Investors (RIIs) exhibited significant interest, oversubscribing at an impressive rate of 10.20 times. Overall, the IPO recorded a subscription of 6.96 times.
Mukka Proteins IPO – Fundamental Analysis:
Mukka Proteins exhibits a strong financial profile with steady revenue growth, from ₹5,492.48 million in 2020 to ₹7,705.03 million in 2022, alongside fluctuating yet improving profitability. Despite profit variations, trends in Return on Net Worth and Earnings Per Share are upward, with RoNW hitting 27.75% and EPS increasing to ₹1.10 in 2022. The company’s declining Debt-Equity ratio, down to 154.84%, and a rising Net Asset Value suggest healthier financial leverage and asset growth. Additionally, an enhanced Gross Profit Margin, reaching 17.62%, reflects greater operational efficiency.
Mukka Proteins IPO – Risks And Challenges:
Mukka Proteins Limited confronts various risks, including legal issues involving its subsidiaries, directors, and group companies, which could materially impact its operations and finances. Weather-related challenges like cyclones and unpredictable rainfall affect raw material supply, essential for their operations reliant on the recovery of Indian oil sardine. The company’s coastal facilities, vital for raw fish access, face risks of underutilization and operational disruptions. Expansion and operational efficiency are contingent on regulatory approvals and resource availability, with potential disruptions from electricity, fuel, and water shortages posing significant threats to their business stability.
