Mukka Proteins Limited Initial public offering subscription period commenced on February 29, 2024, and is set to end on March 4, 2024. Interested investors have only one day left to apply for shares. The IPO has already garnered ₹67.20 crore from anchor investors, with the company’s promoters targeting a total capital raise of ₹224 crore through the issuance of fresh shares. The price range for the IPO is ₹26 to ₹28 per equity share. Initial reports indicate strong demand, as the book build issue has been oversubscribed by 6.97 times within the first two days of bidding. The grey market sentiment is optimistic, with the grey market premium (GMP) for the Mukka Proteins IPO presently at ₹30.
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An overview about Mukka Proteins Limited Initial public offering
Founded in March 2003, Mukka Proteins Limited Initial public offering is primarily involved in the production of fish protein-containing products. The company produces and distributes vital components for aqua feed (used in fish and shrimp farming), poultry feed (for broilers and layers) and pet food (for dogs and cats), including fish meal, fish oil and fish soluble paste.
Mukka Proteins is a worldwide company that exports its goods to over ten nations, including China, Saudi Arabia, South Korea, Oman, Taiwan, Vietnam, Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, and Taiwan.
The company employs 385 people in a variety of departments as of March 31, 2023, including operations, management, technical and support staff, and administration.
With six production facilities in operation—four under its foreign subsidiary, Ocean Aquatic Proteins LLC, in India and two under its foreign subsidiary, Mukka Proteins LLC—the company strategically places its facilities close to coastlines. The business also runs five storage facilities and three blending plants, all of which are located in India.
With certifications for ISO 22000:2018 and ISO 9001:2015 management system standards from NQA and UKAS, Mukka Proteins maintains strict quality standards.
Additionally, the company has contractual agreements with third-party manufacturing facilities located in Taloja, Maharashtra, Sasihithlu, Karnataka, and Ratnagiri, Maharashtra, for the supply of fishmeal and fish oil as of December 31, 2022.
Financial Performance and Valuation of Mukka Proteins Limited Initial public offering
The Restated Consolidated Financial Information of Mukka Proteins Limited indicates a significant rise in revenue and profit after tax (PAT) for the fiscal years ending on March 31, 2022, and March 31, 2023. PAT increased by a staggering 84.07 percent, while revenue increased by 52.52%.
The business of Mukka Proteins Limited Initial public offering has continuously shown excellent results on a consolidated basis over the previous three fiscal years. The total revenue and net profit for FY21 were Rs. 609.95 crore and Rs. 11.01 crore, respectively. For FY22 and FY23, the corresponding figures were Rs. 776.15 crore and Rs. 25.82 crore and Rs. 1183.80 crore and Rs. 47.53 crore, respectively. With a total revenue of Rs. 612.88 crore, the company’s first half of FY24 ended on September 30, 2023, with a net profit of Rs. 32.98 crore. This trajectory shows a positive pattern of growth in both the top and bottom lines, indicating favourable future prospects.
The company reported an average Return on Net Worth (RoNW) of 28.66% and an average Earnings Per Share (EPS) of Rs. 1.44 for the same period. Regarding the issue’s pricing, it is valued at a post-IPO NAV of Rs. xx per share (at the upper cap) and at a Price-to-Book Value (P/BV) ratio based on its Net Asset Value (NAV) of Rs. 7.23 as of September 30, 2023. Attributing FY24 annualised earnings to its fully diluted paid-up equity capital following the IPO results in a price-to-earnings (P/E) ratio of 12.73 for the asking price.
The company’s Profit After Tax (PAT) margins were 1.82% in FY21, 3.35% in FY22, 4.04% in FY23, and 5.44% in the first half of FY24, according to the analysis. Similarly, for the cited periods, the Return on Capital Employed (RoCE) margins were 5.86%, 13.86%, 17.62%, and 9.41%, respectively.
Regarding dividend policy, for the reported periods specified in the offer document, the company has not declared any dividends. In light of its past financial results and anticipated future growth, it plans to implement a cautious dividend policy.
The company is also compared to its listed competitors, such as Avanti Feeds, Godrej Agrovet, Zeal Aqua, and Waterbase, in the offer document. As of February 26, 2024, these peers’ Price-to-Earnings (P/E) ratios are 19.9, 31.5, 22.2, and 00, respectively. It’s crucial to remember that these comparisons might not be totally accurate because it’s difficult to make an apple-to-apple comparison because all of these peers are actually Mukka Proteins clients.
Here is a summary of key financial metrics for the specified periods of Mukka Proteins Limited Initial public offering:
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | ₹641.18 Cr | ₹575.16 Cr | ₹392.30 Cr | ₹353.93 Cr |
| Revenue | ₹612.88 Cr | ₹1,183.80 Cr | ₹776.15 Cr | ₹609.95 Cr |
| PAT | ₹32.98 Cr | ₹47.53 Cr | ₹25.82 Cr | ₹11.01 Cr |
| Net Worth | ₹159.11 Cr | ₹128.92 Cr | ₹87.25 Cr | ₹64.54 Cr |
| Reserves and Surplus | ₹144.92 Cr | ₹112.57 Cr | ₹68.51 Cr | ₹60.80 Cr |
| Total Borrowing | ₹317.73 Cr | ₹254.83 Cr | ₹173.50 Cr | ₹159.19 Cr |
All amounts are in crore rupees. These figures underscore Mukka Proteins Limited’s robust financial performance and growth trajectory over the specified periods.
The following are the Key Performance Indicators (KPIs) for the Mukka Proteins Limited Initial public offering:
- The current market capitalization is Rs 840 crore.
- 36.71% is the return on equity (ROE).
- 17.62% is the return on capital employed (ROCE).
- Ratio of Debt to Equity: 1.64
- 34.19% is the return on net worth (RoNW).
- Ratio of price to book value (P/BV): 4.78
Complete details about Mukka proteins Limited initial public offering:
| Mukka Proteins IPO Details | |
| IPO Dates | February 29, 2024 – March 4, 2024 |
| Listing Date | [To be announced] |
| Face Value | ₹1 per share |
| Price Band | ₹26 to ₹28 per share |
| Lot Size | 535 Shares |
| Total Issue Size | 80,000,000 shares (aggregating up to ₹224.00 Cr) |
| Fresh Issue | 80,000,000 shares (aggregating up to ₹224.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding Pre-Issue | 220,000,000 |
| Shareholding Post-Issue | 300,000,000 |
| Mukka Proteins IPO Reservation | |
| Investor Category | Shares Offered |
| Anchor Investor Shares Offered | 23,999,565 (30.00%) |
| QIB Shares Offered | 16,000,435 (20.00%) |
| NII (HNI) Shares Offered | 12,000,000 (15.00%) |
| bNII > ₹10L | 8,000,000 (10.00%) |
| sNII < ₹10L | 4,000,000 (5.00%) |
| Retail Shares Offered | 28,000,000 (35.00%) |
| Total Shares Offered | 80,000,000 (100%) |
| Mukka Proteins IPO Anchor Investors Details | |
| Bid Date | February 28, 2024 |
| Shares Offered | 23,999,565 |
| Anchor Portion Size (In Cr.) | ₹67.20 |
| Anchor Lock-in Period End Date for 50% shares (30 Days) | April 4, 2024 |
| Anchor Lock-in Period End Date for Remaining Shares (90 Days) | June 3, 2024 |
| Mukka Proteins IPO Timeline (Tentative Schedule) | |
| IPO Open Date | Thursday, February 29, 2024 |
| IPO Close Date | Monday, March 4, 2024 |
| Basis of Allotment | Tuesday, March 5, 2024 |
| Initiation of Refunds | Wednesday, March 6, 2024 |
| Credit of Shares to Demat | Wednesday, March 6, 2024 |
| Listing Date | Thursday, March 7, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 4, 2024 |
| Mukka Proteins IPO Lot Size | |
| Application | Lots |
| Retail (Min) | 1 |
| Retail (Max) | 13 |
| S-HNI (Min) | 14 |
| S-HNI (Max) | 66 |
| B-HNI (Min) | 67 |
Goals of the Mukka Proteins Limited Initial public offering
Application of the issue’s net proceeds to the payment of the business’s working capital needs.
Investment made in the affiliated business Ento Proteins Private Limited to meet its working capital requirements.
Allocate funds for overall company objectives.
MPL is a market leader in the production and distribution of fish oil, fish meal, and associated goods both nationally and internationally. Important details about MPL’s standing and output consist of:
having a sizable market share of between 25 and 30 percent in India, a country with two thirds of its land on the coast.
Both the top and bottom lines have shown growth, indicating bright future prospects.
The pricing of the issue seems fair when considering the annualised earnings for FY24.
Investors who have no reservations about the segment might think about making an investment for medium to long term future
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
