Mukka Proteins sets price band at Rs 26-28 a share for IPO opening on Feb 29

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.

Fish protein products manufacturing company Mukka Proteins Ltd has set a price band of Rs 26-28 a share for its initial public offering that will open for subscription on February 29.

The issue's anchor investment will start on February 28, and it will close on March 4. Allotment will be on March 5 and initiation of refunds will be on March 6. The stock will be listed on exchanges on March 7.

The IPO consists of a pure fresh issue of up to 80 million shares. On the upper price band, the fresh issue will be at Rs 224 crore and the total value of the company will be near Rs 850 crore.

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.

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 the domestic market, it also exports products to over 10 countries, including Bahrain, Chile, Malaysia, the Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.

Mukka has recorded a consolidated net profit of Rs 25.8 crore for the year ended March FY22, increasing significantly from Rs 11.01 crore last 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.

Mukka Proteins is one of the key players in India's fish protein sector, consistently being awarded by the Marine Products Export Development Authority (MPEDA) for its exceptional export performance. In the fiscal year 2023, the company contributed between 25 percent to 30 percent of the Indian fish meal and fish oil industry's revenue, estimated to be between Rs 3,200 crore and Rs 4,100 crore, as per a CRISIL report cited in the RHP.

The company also plans to expand the manufacturing footprint through its associates, Ento Proteins Private Limited. It produces insect meal from food waste and is the winner of Network 18 Sustainability Award under the category circularity for the year 2022.

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