Mukka Proteins becomes 1st firm from Coastal K’taka to successfully venture into IPO in recent times
Mangalore-based Mukka Proteins IPO was subscribed 6.96 times on second day
Mangaluru, February 29, 2024: In a significant milestone for Coastal Karnataka, Mangalore-based Mukka Proteins, a leading manufacturer of fish meal, fish oil, and fish soluble paste, witnessed a robust response to its initial public offering (IPO) on the first day of bidding, being subscribed 2.47 times. On the second day of bidding, it received 6.96 times subscription on Friday. This makes the Mukka Proteins the first private company from Coastal Karnataka to successfully venture into the IPO arena in recent years.
Mukka Proteins was founded by K Abdul Razak who is the Founder Chairman and Non-Executive Director of the company. Karkala Shankar Balachandra Rao serves as the Chairman and Independent Director while K Mohammed Haris serves as the Managing Director and CEO of the company.
K Abdul Razak, Founder Chairman and Non-Executive Director of Mukka Proteins
The IPO, with an initial share sale of Rs 224 crore, garnered impressive demand, receiving bids for 13,81,99,060 shares on the first day while it managed to receive bids for nearly 39 crores against 5,60,00,435 shares on offer, as per NSE data., according to data from the National Stock Exchange (NSE).
Breaking down the subscription figures, the Retail Individual Investors (RIIs) category witnessed a substantial 3.69 times subscription, while non-institutional investors showed a 1.55 times subscription. The portion allocated for Qualified Institutional Buyers (QIBs) received a healthy 1.01 times subscription.
The IPO, offering up to 8 crore equity shares, is priced in the range of Rs 26-28 per share. Notably, the issue is exclusively a fresh issue, with no Offer For Sale (OFS) component.
Mukka Proteins successfully raised over Rs 67 crore from anchor investors a day before the IPO.
Utilization of the proceeds includes allocating Rs 120 crore for working capital requirements and up to Rs 10 crore for investment in its associate, Ento Proteins, to support its working capital needs. Additionally, a portion of the funds will be allocated for general corporate purposes.
Mukka Proteins holds a prominent position in India's fish protein sector, and its diverse product portfolio includes fish oil with applications ranging from pharmaceuticals, soap making, leather treatment, to paint manufacturing.
The company serves a global market, distributing its products to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, the Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.
Fedex Securities is managing the offer, and Mukka Proteins' equity shares are proposed to be listed on both the BSE and NSE.
In a noteworthy development, six investors participated in the anchor book, including Neomile Growth Fund, Saint Capital Fund, Zinnia Global Fund, Eminence Global Fund, Craft Emerging Market Fund, and Elara India Opportunities Fund.
Analysts have recommended investors to 'Subscribe' to the IPO, citing the company's strong market position, diversified product portfolio, global presence, and consistent revenue growth, according to a CNBCTV18 report.
Mukka Proteins, recipient of the Export Excellence Award from President of India , boasts a three-year average return on equity (ROE) and return on capital employed (ROCE) of 28 and 12 per cent, respectively.
The company has exhibited robust growth, with revenue increasing by 40 per cent annually between FY21-23, and profit after tax compounding at 122 per cent annually during the same period.
The stock's valuation stands at a P/E and P/B of 19.1 and 2.1 times, respectively, with no listed peers in a similar business.
Mukka Proteins' strengths include a high market share of around 25-30 per cent in the Indian fish meal and fish oil industry, a global footprint covering over 10 countries, and strong client relationships, with more than 50 per cent of revenue generated from clients associated with the company for over five years. Importantly, the company has retained its largest client for over a decade.
The rising demand for fish protein products, coupled with favorable government initiatives, positions Mukka Proteins for future growth. This IPO underscores the success of Mukka Proteins and its potential to contribute significantly to the evolving Indian fish protein sector.
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South African police arrest suspect in mass shooting that killed 12, including 3 children
Johannesburg (AP): A 32-year-old suspect has been arrested in connection with a mass shooting which claimed the lives of 12 people including three children at an unlicensed pub earlier this month, South African police said on Monday.
The man is suspected of being one of the three people who opened fire on patrons in a pub at Saulsville township, west of South Africa's capital Pretoria, killing 12 people including three children aged 3, 12 and 16.
At least 13 people were also injured during the attack, whose motive remains unknown.
According to the police, the suspect was arrested on Sunday while traveling to Botlokwa in Limpopo province, more than 340 km from where the mass shooting took place on Dec 6.
An unlicensed firearm believed to have been used during the attack was recovered from the suspect's vehicle.
“The 32-year-old suspect was intercepted by Limpopo Tracking Team on the R101 Road in Westenburg precinct. During the arrest, the team recovered an unlicensed firearm, a hand gun, believed to have been used in the commission of the multiple murders. The firearm will be taken to the Forensic Science Laboratory for ballistic analysis,” police said in statement.
The suspect was arrested on the same day that another mass shooting at a pub took place in the Bekkersdal township, west of Johannesburg, in which nine people were killed and 10 wounded when unknown gunmen opened fire on patrons.
Police have since launched a search for the suspects.
South Africa has one of the highest homicide rates in the world and recorded more than 26,000 homicides in 2024 — an average of more than 70 a day. Firearms are by far the leading cause of death in homicides.
The country of 62 million people has relatively strict gun ownership laws, but many killings are committed with illegal guns, according to authorities.
According to police, mass shootings at unlicensed bars are becoming a serious problem. Police shut down more than 11,000 illegal taverns between April and September this year and arrested more than 18,000 people for involvement in illegal liquor sales.
