Fish protein products manufacturing company Mukka Proteins has received approval from the capital markets regulator Sebi to go public for raising funds.
The IPO comprises only a fresh issue of 8 crore shares by the company and there is no offer-for-sale component.
The Karnataka-based firm will utilise Rs 120 crore for its working capital requirements and spend Rs 10 crore for the working capital requirements of its associate company Ento Proteins. The remainder of the net fresh issue proceeds will be kept for general corporate purposes.
In Sebi parlance, the issuance of observation letter for the draft papers indicates that the company can launch its public issue.
The regulator issued the observation letter on October 30 for the draft red herring prospectus filed by the company in June 2023.
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With six manufacturing facilities, Mukka Proteins supplies 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 cat food). Further, fish oil is also used for pharmaceutical products, soap manufacturing, leather tanneries and paint industries.
The company also operates three blending facilities and five storage facilities. Apart from domestic market, it also exports products to over 10 countries, including Bahrain, Chile, Malaysia, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.
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Mukka has recorded consolidated net profit at Rs 25.8 crore for the year ended March FY22, increasing significantly from Rs 11.01 crore in previous year, and the revenue from operations during the same period jumped from Rs 603.8 crore to Rs 770.5 crore.
In the nine months ended December FY23, it reported a net profit of Rs 25.6 crore on revenue of Rs 756.4 crore, which is largely similar to entire previous financial year (FY22).
Fedex Securities is the merchant banker to the issue, while Cameo Corporate Services is the registrar to the offer.
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