Ahead of the listing, the company’s shares were trading with a GMP of Rs 35.
The IPO of Mukka Proteins, which was completely a fresh equity issue of 8 crore shares, received nearly 137 times subscription at close on strong interest from institutional and non-institutional investors.
Net proceeds raised through the issue will be used towards working capital requirements, investment in its associate, Ento Proteins , and funding working capital requirements as well as general corporate purposes.
Mukka Proteins is one of the leading companies for manufacturing and marketing of fish meal, fish oil and allied products in domestic as well as global markets.
Also Read: Gathiya maker Gopal Snacks’ IPO opens for subscription. Should you bid?The company sells its products domestically and exports them to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan and Vietnam.Mukka has around 25-30% market share in India that has two-third coastal land.
Fish meal is predominantly used as a rich source of protein in compound feeds and the demand is driven by the aquaculture industry. The production of fish meal and fish oil depends on the natural availability of fishes and prevailing climatic conditions. In value terms the industry is expected to grow at 5-9% between fiscal 2022 and 2026 reaching Rs 1600-2000 crore.
In FY23, the company’s revenue from operations rose 53% year-on-year to Rs 1177 crore and net profit jumped over 80% to Rs 44 crore. For the six months ended September 2023 period, revenue stood at Rs 612 crore and profit was at Rs 32.3 crore.
Fedex Securities acted as the sole book-running lead manager and Cameo Corporate Services was the registrar of the offer.
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