Mukka Proteins IPO fully subscribed on strong retail interest. Check GMP and other details

The initial public offer (IPO) of Mukka Proteins received a healthy response from investors on the first day of bidding on Thursday with the issue sailing through within hours of opening. The IPO was booked 2.47 times at close on first day.

The demand was driven by retail investors, whose category was booked 3.7 times and the NII portion followed closely at 1.15 times.

Mukka Proteins IPO review

Most analysts gave a 'subscribe' recommendation for the IPO from a long-term perspective over fair valuations and a unique business model.

"At the upper price band, the company is valued at P/E of 17.7x with a market cap of Rs 840 crore post issue of equity shares. We believe that valuations of the company are fairly priced and recommend a Subscribe-Long Term rating to the IPO," said Anand Rathi.

Also Read: Mukka Proteins IPO opens for subscription. Should you bid?

Mukka Proteins IPO GMP

In the unlisted market, the company's shares are trading with a premium of Rs 17.

Mukka Proteins IPO price band

The price band for the offer has been determined at Rs 26–28 per equity share. The IPO will fetch Rs 224 crore at the upper end of the price band. Investors can bid for a minimum of 535 equity shares and in multiples thereafter.

Other details

The issue is being made through the book-building process, wherein 50% will be available for qualified institutional buyers, 15% for non-institutional investors and 35% for retail 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 and global markets.

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 which has two-third coastal land.

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 at Rs 32.3 crore.

Fedex Securities is the sole book-running lead manager and Cameo Corporate Services is the registrar of the offer.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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