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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KKR defeat LSG via Super Over
Lucknow (PTI): Kolkata Knight Riders edged Lucknow Super Giants via Super Overs in a battle between two bottom-placed teams in the IPL, here on Sunday.
Chasing a modest 156, LSG suffered a batting collapse and managed to tie the contest and take it to Super Over with No. 9 Mohammed Shami striking a last-ball six against a wayward Kartik Tyagi, who leaked 16 runs in the final over.
But Sunil Narine bowled a stunning Super Over conceding just one run and taking two wickets to give KKR an easy target.
Rinku Singh then finished the chase with a boundary off first ball from Prince Yadav.
Earlier the KKR were in deep trouble with 93/7 in 15 overs but Rinku smashed a sensational 83 not out from 51 balls including four sixes in a row in the final over to lift them to 155/7.
Cameron Green (34) was the only other batter to reach double-digit scores as KKR suffered a familiar batting meltdown with Mohsin taking his maiden fifer.
In reply, LSG continued their dismal show with the bat to succumb to their fifth loss in a row.
Brief Scores:
Kolkata Knight Riders 155/7; 20 overs (Rinku Singh 83 not out, Cameron Green 34; Mohsin Khan 5/23). Lucknow Super Giants 155/8; 20 overs (Rishabh Pant 42). KKR won via Super Over.
