Mukka Proteins shares recorded more than 50 percent gains, but still failed to meet the listing expectations on March 7, the debut day. Analysts had projected it to debut with triple-digit gains of 125 percent and even the grey market had indicated similar kind of performance.
The stock opened 43 percent higher at Rs 40 on the NSE, against the issue price of Rs 28, and after initial hour of volatility, it gained strength again and locked at Rs 42.25 for the rest of session, up 50.89 percent over the IPO price and five percent over the opening price, with volume of 2.9 crore equity shares.
The stock is listed in the trade-for-trade segment, hence it has five percent circuit limit from the opening price. In fact, it will be in trade-for-trade segment for 10 trading days, including Thursday.
On the BSE, the stock rose 50.93 percent to close at Rs 42.26 with volume of 37.61 lakh equity shares.
The Karnataka-based fish protein products manufacturer launched its public issue during February 29-March 4 with the aim to raise Rs 224 crore, which consisted of only a fresh issue. The price band for the issue was Rs 26-28 per share.
Also read: Mukka Proteins lists with 43% premium: Should you buy, sell, or hold the stock?
Proceeds from the fresh issue will be utilised mainly for working capital requirements of the company, and associate entity Ento Proteins, besides general corporate purpose.
Mukka Proteins manufactures fish meal, fish oil and fish soluble paste which is an essential ingredient in the manufacturing of aqua feed (for fish and shrimp), poultry feed (for broiler and layer) and pet food (dog and catfood). Along with domestic supply, it also exports products to more than 10 countries including Bahrain, Chile, Malaysia, Philippines, China, Saudi Arabia, Oman, and Taiwan.
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