Everything you need to know about Mukka Proteins Limited IPO

Mukka Proteins Limited is launching its IPO. The IPO opens for subscription on February 29, 2024, and will close on 4th March.

What does Mukka Proteins do?

Incorporated in March 2003, Mukka Proteins Limited engages in the production and supply of fish protein products. The company’s offerings include fish meal, fish oil, and fish soluble paste, targeting the aqua feed, poultry feed, and pet food industries. Fish oil also finds applications in pharmaceuticals, soap manufacturing, leather tanneries, and paint industries.

Key aspects of the company include:

Global Presence: The company exports its products to more than ten countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.

Manufacturing Facilities: The company operates six manufacturing facilities (four in India and two in Oman through Ocean Aquatic Proteins LLC), along with three blending facilities and five storage facilities in India. These facilities are strategically located near coastlines for optimal raw material access.

Certifications: The entity is certified with ISO 22000:2018 and ISO 9001:2015 by NQA and UKAS Management Systems, reflecting compliance with established standards of quality and safety.

Raw Materials: The primary materials used include pelagic fish like sardine, mackerel, and anchovy, which are obtained locally to ensure their freshness and quality.

As of March 31, 2023, there are 385 individuals employed across various departments such as technical, support, administration, management, and operations.

What is the issue size of Mukka Proteins Limited IPO?

The public offering consists of a book-built issue amounting to Rs 225.00 crores. This issue comprises entirely fresh issuance of shares.

Financials of Mukka Proteins Limited IPO

Financial Year Total Assets (₹ crores) Total Revenue (₹ crores) Profit After Tax (₹ crores) EPS EBITDA (₹ crores)
March 31, 2021 353.92 609.95 11.01 0.41 31.81
March 31, 2022 392.29 776.14 25.81 1.10 54.23

Risk factors to consider:

Regulatory Compliance Risks: The company faces risks if it fails to obtain, retain, or comply with necessary approvals, licenses, and regulations, potentially adversely affecting operations and business continuity.

Cash Flow Challenges: Negative cash flows from operating activities have been experienced and may occur in the future, potentially impacting the company’s financial stability and operational viability.

Environmental Legal Risks: Ongoing legal proceedings related to alleged environmental norm violations could negatively affect operations, particularly at the Mukka Manufacturing Facility.

Customer Concentration Risk: Heavy reliance on a limited number of customers for the majority of revenue poses risks of significant financial impact if relationships are adversely affected.

Supplier Dependency Risk: Dependence on a few suppliers for key raw materials, such as pelagic fish, exposes the company to potential supply disruptions and financial volatility.

Regulatory Non-Compliance Penalties: Past instances of regulatory non-compliance could result in penalties, affecting the company’s financial position and market reputation.

Seasonality of Operations: The business is subject to seasonal fluctuations, particularly in the fish meal and fish oil industry, affecting production and financial performance.

Product Quality Risks: Risks of contamination, adulteration, or tampering during production, transportation, or storage could harm the company’s reputation and financial health.

Insect Protein Business Uncertainty: Venturing into the insect protein business carries risks of market acceptance and operational scalability, potentially impacting financial outcomes.

International Regulatory Risks: Exposure to international market regulations and trade barriers could complicate operations and impact financial results.

Third-Party Manufacturing Risks: Reliance on third-party manufacturers introduces risks related to quality control and supply chain disruptions.

Labor Management Risks: The use of contract labor may expose the company to wage payment liabilities and labor management challenges, impacting financial health.

Schedule/Timeline of Mukka Proteins Limited IPO

Issue Period 29th February to 4th March 2024
Deadline for accepting UPI mandate Until 5 PM on the issue closing day
Finalization of Allotment March 05, 2024
Initiation of Refunds March 06, 2024
Credit of Shares March 06, 2024
Date of Listing March 07, 2024
Mandate end date March 19, 2024
Anchor Investors Lock-In End Date (50% of the investment) April 05, 2024
Anchor Investors Lock-In End Date (Remaining investment) June 05, 2024

Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.

How to apply for the Mukka Proteins Limited IPO?

You can apply for Mukka Proteins Limited IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite

  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status of the Mukka Proteins Limited IPO?

You can check the allotment status for the Mukka Proteins Limited IPO on the website of the Registrar and Transfer Agent. Alternatively, you can also check the allotment status on the NSE website.