Mukka Proteins makes strong debut on stock exchanges, lists at 43% premium

Mukka Proteins listing: Fish protein product manufacturer and exporter Mukka Proteins made an impressive stock market debut on Thursday, March 7, 2024, ar Rs 40 apiece on the National Stock Exchange (NSE) marking a premium of 42.86 per cent over its issue price of Rs 28.

Although the listing performance was robust, it fell short of market expectations, which had speculated a triple-digit premium debut, as indicated by the grey market premium (GMP) commanded by the stock.

The company's initial public offering (IPO) garnered substantial investor interest and was oversubscribed 136.99 times. Non-institutional investors led the subscription, oversubscribing by 250.38 times, followed by qualified institutional buyers at 189.28 times, and retail investors at 58.52 times their allotted quotas.

Analysts expressed bullish sentiments towards Mukka Proteins' IPO, citing its robust customer base, strong market positioning, and healthy financial performance in previous years as key factors driving investor confidence.

Mukka Proteins, which caters to both domestic and international markets, has exhibited a consistent track record of strong financial performance. In FY23, the company reported an 84 per cent year-on-year increase in net profit to Rs 47.5 crore, accompanied by a 53 per cent surge in revenue from operations to Rs 1,177.1 crore.

The IPO saw the company raise Rs 224 crore through a fresh issue of shares. The proceeds are earmarked to fund the company's working capital requirements and those of its affiliate, Ento Proteins, in addition to serving general corporate objectives.

The IPO, which commenced on February 29, 2024, and concluded on March 4, 2024, was a book-built issue of Rs 224.00 crore. The final allotment of shares was made on Tuesday, March 5, 2024, followed by the listing on BSE and NSE on March 7, 2024.

The price band for the IPO was set at Rs 26 to Rs 28 per share, with a minimum lot size of 535 shares. Retail investors were required to invest a minimum of Rs 14,980, while non-institutional investors were allocated minimum lot sizes of 14 lots (7,490 shares) and 67 lots (35,845 shares) for sNII and bNII, respectively.

Fedex Securities Pvt Ltd served as the book-running lead manager for the Mukka Proteins IPO, while Cameo Corporate Services Limited acted as the registrar for the issue.

Mukka Proteins, incorporated in March 2003, manufactures fish protein products, including fish meal, fish oil, and fish soluble paste, essential ingredients for aqua feed, poultry feed, and pet food production. The company exports its products to over 10 countries and operates six production facilities across India and Oman.

The successful IPO marks a significant milestone for Mukka Proteins, providing the company with the necessary capital to pursue its growth objectives and strengthen its market position in the burgeoning fish protein products industry.