07-Nov-2023
2 mins read
Mukka Proteins, a fish product manufacturer, is poised to make a splash in the public market. The Securities and Exchange Board of India (SEBI) has given an NOD for the company to launch an initial public offering (IPO). This move is set to see Mukka Proteins issuing up to 8 crore equity shares, as indicated by their recently updated draft red herring prospectus.
SEBI’s Observation Letter
The company, which revisited its IPO documentation in June, received the crucial observation letter from SEBI dated October 30. This letter is tantamount to SEBI’s approval for the public issue. Mukka Proteins’ objective with this IPO is multifaceted, as revealed in the draft papers. They plan to allocate as much as Rs 120 crore to meet working capital needs, invest up to Rs 10 crore in its associate firm Ento Proteins Pvt Ltd, and earmark a portion for general corporate purposes.
Anticipated IPO Size and Company Growth
Insiders hint that the IPO size could be pegged between Rs 175 crore and Rs 200 crore. This expectation comes in light of Mukka Proteins’ substantial growth, where the company reported a significant 27.60% increase in revenue from operations in fiscal 2022. This uptick saw revenues climb to Rs 770.50 crore from Rs 603.83 crore in fiscal 2021. Notably, the profit after tax also soared by a remarkable 134.50% to Rs 25.82 crore during the same period.
Mukka Proteins’ Market Presence
Headquartered in Mangaluru, Mukka Proteins has an extensive operational footprint. With six manufacturing facilities, two of which are through its subsidiary Ocean Aquatic Proteins LLC in Oman and four in India, the company has a solid production base. Additionally, it operates five storage and three blending facilities across India, emphasizing its robust infrastructure for manufacturing essential ingredients used in aqua feed, poultry feed, and pet food.
Listing and Book Running
Fedex Securities is spearheading the IPO as the sole book-running lead manager, ensuring that the process is smooth and efficient. Post-IPO, Mukka Proteins plans to list its equity shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), marking a new chapter for the company in the capital market.
This IPO comes after an initial attempt in March 2022, which the company later withdrew. With the current positive outlook and SEBI’s approval, Mukka Proteins is well on its way to an anticipated successful public offering.