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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Beauty of democracy: Tharoor congratulates BJP on civic body poll win in his constituency
New Delhi (PTI): Congress leader Shashi Tharoor on Saturday, while lauding the win of the UDF in Kerala local bodies elections, also congratulated the BJP for its historic performance in his Thiruvananthapuram constituency, calling it the "beauty of democracy".
In a post on X, he said the people's verdict must be respected, whether for the UDF overall or for the BJP in his constituency.
"What a day of amazing results in the Kerala local self-government elections! The mandate is clear, and the democratic spirit of the state shines through.
"A huge congratulations to @UDFKerala for a truly impressive win across various local bodies! This is a massive endorsement and a powerful signal ahead of the state legislative elections. Hard work, a strong message and anti-incumbency have all clearly paid off to achieve a much better result than in 2020," Tharoor said.
He said he also acknowledges the historic performance of the BJP in Thiruvananthapuram, and "offer humble congratulations on their significant victory in the city corporation - a strong showing that marks a notable shift in the capital's political landscape."
Tharoor said he campaigned for a change from 45 years of the LDF "misrule", but the voters have ultimately rewarded another party that also sought a clear change in governance.
"That is the beauty of democracy. The people's verdict must be respected, whether for the UDF overall or for the BJP in my constituency.
"We will continue to work for the betterment of Kerala, advocating for the people's needs and upholding the principles of good governance. Onwards and upwards!" Tharoor, who is the MP from Thiruvananthapuram, said.
The lotus bloomed in the state capital as the BJP-led NDA achieved a resounding win in the polls for the Thiruvananthapuram Corporation, snatching it from the CPI(M)-led LDF and marking an end to 45 years of continuous Left rule in the local body.
The win in the Thiruvananthapuram Corporation will act as a boost for the BJP in the 2026 Assembly polls, especially in the state capital.
Of the 101 wards in the Thiruvananthapuram Corporation, the BJP won 50, LDF 29, UDF 19 and two wards were won by independent candidates.
The BJP is one seat short of a decisive majority in the corporation.
Besides this, the NDA retained the Palakkad municipality after a close battle with the Congress-led UDF and wrested the Thrippunithura Municipality from the grand old party.
In Thrissur, from where Suresh Gopi won in the Lok Sabha polls last year, the BJP won 18 out of the 46 wards in Kodungallur Municipality, eight in Thrissur Corporation, two each in Guruvayoor and Vadakkancherry municipalities, seven in Kunnamkulam Municipality, six in Irinjalakuda Municipality and one in Chalakudy Municipality.
