Mukka Proteins Limited IPO - Complete Overview

Established in March 2003, Mukka Proteins Limited is a top-notch fish protein product manufacturer. The company creates and delivers essential ingredients like fish meal, fish oil, and fish soluble paste, crucial for making aqua feed (for fish and shrimp), poultry feed (for broilers and layers), and pet food (for dogs and cats).

Mukka Proteins exports its goods to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.

As of March 31, 2023, the company employs 385 people across various departments. It operates six production facilities, with four in India and two owned by its foreign subsidiary, Ocean Aquatic Proteins LLC, in Oman. Additionally, the company manages three blending plants and five storage facilities, all strategically located near the coast.

Certified by NQA and UKAS to ISO 22000:2018 and ISO 9001:2015 standards, Mukka Proteins ensures world-class quality.

Mukka Proteins plays a key role in the fish protein product industry, meeting the global demand for quality products.

 

Mukka Proteins Limited IPO Overview

Mukka Proteins Limited IPO date is slated to be open for subscription from February 29, 2024, to March 4, 2024. This BSE NSE IPO follows a Book Built Issue IPO.

Mukka Proteins Limited IPO price is fixed at Rs.26 - Rs.28 per share. 

The total issue size of this IPO amounts to Rs. 224 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

Company Financial

In FY23, the company experienced significant growth compared to FY22 in financials.

(Amount in Crore)

Period	Sep 30 FY 23	Mar 31 FY 23	Mar 31 FY 22
Total Assets	641.18	575.16	392.30
Total Revenue	612.88	1,183.80	776.15
PAT	32.98	47.53	25.82
Net worth	159.11	128.92	87.25
Reserve & Surplus	144.92	112.57	68.51
Total Borrowings	317.73	254.83	173.50

Revenue  Distribution  Product-Wise          

In FY23, revenue for fish meal, fish oil, and fish soluble paste increased compared to FY22, totaling ₹1,154.30 Crore, up from ₹765.73 Crore.

(Amount in Crore)

Particulars	Sep 30 FY 23	Mar 31 FY 23	Mar 31 FY 22
Fish meal	522.17	962.07	712.08
Fish oi	53.66	165.32	32.55
Fish soluble paste	13.64	26.91	21.10
Total	589.48	1,154.30	765.73

Revenue Distribution State-Wise         

In FY23, Indian revenue tripled to Rs.1,901.21 Crore, and international revenue rose to Rs.3,993.66 Crore, resulting in total revenue growth from Rs.765.73 Crore to Rs.1,154.30 Crore compared to FY22.

(Amount in Crore)

Particulars	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Within India revenue	1,901.21	486.50	569.32
Outside India revenue	3,993.66	667.80	196.41
Total	589.48	1,154.30	765.73

 

 

 

Revenue by Operations

In FY23, revenue from operations increased from ₹7,70.50 Crore to ₹11,77.12 Crore, and total revenue grew from ₹776.14 Crore to ₹1,183.80 Crore compared to FY22.

(Amount in Crore)

Particulars	Sep 30 FY 23	Mar 31 FY 23	Mar 31 FY 22
Revenue from operations	6,06.09	11,77.12	7,70.50
Other Income	6.78	6.68	5.64
Total Revenue	612.88	1,183.80	776.14

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Meeting the Company's working capital needs;

• Providing financial support to the Associate, namely Ento Proteins Private Limited, to address its working capital requirements;

• Covering general corporate expenses.

 

Peers of Mukka Proteins Limited IPO

Mukka Proteins Limited IPO has a face value of Rs. 1 per share, a P/E ratio of 14.00, and an EPS of Rs. 2.00, with comparable metrics to its peers .

Name of the Company	Face Value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Mukka Proteins Limited	1.00	14.00	2.00
Avanti Feeds Ltd.	1.00	25.00	20.45
Godrej Agrovet Ltd	10.00	33.23	15.71
Zeal Aqua Ltd	1.00	20.63	0.56
Waterbase Ltd.	10.00		-0.84

 

 

 

Evaluation

The IPO is priced within the range of Rs. 26 - Rs. 28 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 2.00 from the last year, the resulting P/E ratio is 14.00x.

- Taking into account the weighted EPS of Rs 1.44 for the last three years, the P/E ratio amounts to 19.44x.

    

Comparative Analysis with Listed Peers:

- Godrej Agrovet Limited has a P/E ratio of 33.23x (the highest).

- Zeal Aqua Limited has a P/E ratio of 20.63x (the lowest).

- The industry's average P/E is 26.29x.

As a result, the IPO price range, with a P/E ratio ranging from 14.00x to 19.44, seems slightly undervalued in comparison to the industry average of 26.29.

 

IPO's Strengths

- Leading manufacturer and exporter of fish protein products.

- Consistent recognition by MPEDA for outstanding export performance over the last 7 years.

- Dominant market share of 45-50% in India's fish meal and fish oil industry for FY 2022.

- Long-standing relationships with key customers in aqua feed, poultry feed, and pet food sectors.

- World-class quality certified plants strategically located in India.

- In-house research and development capabilities.

- Extensive pan-India sales network with well-equipped and automated manufacturing facilities.

 

IPO's Weaknesses

- Heavy reliance on export revenue exposes the company to significant exchange rate-related risks.

- Vulnerability to disruptions in an environmentally sensitive industry, especially due to unpredictable or unseasonal weather.

- Potential risks include failure to meet specified quality standards for fish meal, fish oil, and fish soluble paste.

- Threat of widespread contamination due to man-made factors affecting pelagic fish populations.

 

IPO GMP Today

The Latest GMP of Mukka Proteins Limited IPO is Rs.35.

 

Mukka Proteins Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	29 February 2024
IPO Closing Date	4 March 2024
IPO Allotment Date	5 March 2024
Refund initiation	6 March 2024
IPO Listing Date	7 March 2024

 

 

 

Mukka Proteins Limited IPO Details

IPO opening & closing date	29 February to 04 March
Face Value	Rs.1 per share
Issue Price	Rs. 26- Rs.28 per share
Lot Size	535 Shares
Price of 1 lot	Rs.14,980
Total Issue Size	80,000,000 shares (aggregating up to Rs. 224.00 Cr)
Fresh issue	80,000,000 shares (aggregating up to Rs. 224.00 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Cameo Corporate Services Limited

 

Mukka Proteins Limited IPO Lot Details:

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	535	Rs.14,980
Maximum Lot Investment (Retail)	13 lot	6955	Rs.1,94,740
Minimum Lot Investment (HNI)	14 lot	7,490	Rs.2,09,720
Maximum Lot Investment (HNI)	66 lot	35,310	Rs.9,88,680

 

Mukka Proteins Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

Promoters and Management of Mukka Proteins Limited IPO:

1. Kalandan Mohammed Haris.

2. Kalandan Mohammad Arif.

3. Kalandan Mohammed Althaf. 

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding

Mukka Proteins Limited IPO Lead Managers

• Fedex Securities Pvt Ltd

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

 

 

Conclusion

Mukka Proteins Limited IPO presents financial metrics like a face value of Rs. 1 per share, a P/E ratio of 14.00, and an EPS of Rs. 2.00. While these figures provide insights into the company's standing, deciding whether it's a good or bad investment requires a comprehensive analysis of individual investment preferences, risk tolerance, and market conditions. Prospective investors are encouraged to conduct thorough research and seek professional advice before making any investment decisions.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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