Fish protein products manufacturer Mukka Proteins' public offer witnessed a bumper debut as its shares listed at Rs 40 on the bourses on March 7, at a premium of 42.86 percent over its IPO price of Rs 28.
Even though the listing was strong, it was still below market expectations of a debut with a triple-digit premium as hinted by the grey market premium commanded by the stock.
The company's initial public offering (IPO) also got a strong response and was subscribed 136.99 times. Non-institutional investors led from the front, subscribing 250.38 times their allotted quota of shares. Qualified institutional buyers picked 189.28 times and retail investors bid 58.52 times the portion set aside for them.
Analysts also had a bullish stance on the company's IPO backed on its robust customer base with good positioning in the industry, strong market share and healthy financial performance in the past years.
Mukka Proteins, which sells products domestically and exports to more than 10 countries boasts a strong track record of healthy financial performances. In FY23, its net profit grew 84 percent on-year to Rs 47.5 crore while revenue from operations rose 53 percent to Rs 1,177.1 crore.
The company raised Rs 224 crore through the offer, which was completely a fresh issue. It aims to use the proceeds to fund its working capital needs and those of its affiliate, Ento Proteins, alongside serving general corporate objectives.
Also Read | Mukka Proteins shares likely to debut with triple-digit premium
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