Mukka Proteins Limited

 Initial Public Offering of Mukka Proteins Limited to open on Thursday, February 29, 2024, price band set at ₹26/- to ₹28/- per Equity Share

(Kalandan Mohammed Haris - CMD & CEO - Mukka Proteins Ltd)

Mangaluru-based Mukka Proteins, manufactures fish meal, fish oil and fish soluble paste, 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), has fixed the price band of ₹26/- to ₹28/- per Equity Share of face value ₹1/- each for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Thursday, February 29, 2024, for subscription and close on Monday, March 04, 2024. Investors can bid for a minimum of 535 Equity Shares and in multiples of 535 Equity Shares thereafter.

 

The issue is entirely of a fresh issue of up to 8 crore equity shares with no offer for sale component.

Of the total net proceeds to be raised through the issue, the company proposes to utilise up to Rs 120 crore towards working capital requirements, up to Rs 10 crore for investment in its associate, Ento Proteins Private Limited, for funding its working capital requirements besides general corporate purposes.

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% to 30% of the Indian fish meal and fish oil industry's revenue, estimated to be between ₹3,200 crore to ₹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.

Furthermore, fish oil finds diverse applications, including pharmaceuticals (particularly in EPA-DHA extraction for nutraceuticals), soap making, leather treatment, and paint manufacturing.

Mukka Proteins distributes its products both domestically and internationally, serving over 10 countries such as Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam. Additionally, the company, in collaboration with its affiliate EPPL, has entered into the production and sale of insect meal and insect oil. Omega-3 supplements and related products derived from fish oil are gaining popularity as healthy and nutrient-rich dietary additions.

The company has six manufacturing facilities, with two held through its foreign subsidiary, Ocean Aquatic Proteins LLC, based in Oman, and four situated in India. Additionally, it operates five storage facilities and three blending facilities strategically located along the Indian coastline.

With over five decades of experience, Mukka Proteins' promoters have played a pioneering role in the Fish Protein industry, introducing innovations like the steam drying process for fish meal manufacturing in India.

As of September 30, 2023, the company had an aggregate annualized manufacturing capacity of 115050 MTPA for fish meal, 16950 MTPA for fish oil, and 20340 MTPA for fish soluble paste.

On a consolidated basis, Mukka Proteins Limited’s revenue from operations grew 52.77% from ₹770.50 crore in Fiscal 2022 to ₹1177.12 crore in Fiscal 2023 primarily due to an increase in sales volumes of fish meal and fish oil; and increase in export selling price of fish meal, resulting in high realization per kg of sale and profit after tax increased 84.07% to ₹47.52 crore in Fiscal 2023, from ₹25.82 crore in Fiscal 2022.

For the six months ended September 30, 2023, revenue from operations stood at Rs 606.09 crore and profit after tax stood at Rs 32.98 crore.

Fedex Securities Private Limited is the sole book-running lead manager and Cameo Corporate Services Limited is the registrar to the offer. The equity shares are proposed to be listed on the BSE and NSE.

Notes for Reference:

Issue Size of the IPO based on the upper and lower end of the price band

	Fresh (8 crore shares)
Lower Band (@ Rs 26)	Rs 208 crore
Upper Band (@ Rs 28)	Rs 224 crore