This level of premium is quite significant and indicates the strong demand and investor confidence in Mukka Proteins. The company’s fish protein products have gained popularity in the market due to their high nutritional value and sustainable sourcing practices. This has helped the company build a strong customer base and establish itself as a leading player in the industry.
Furthermore, Mukka Proteins’ financial performance has been impressive in recent years, with consistent revenue growth and profitability. This has attracted the attention of investors who see the company as a promising investment opportunity.
The IPO of Mukka Proteins, a Mangaluru-based company, raised Rs 224 crore and was oversubscribed by 136.99 times from February 29 to March 4.
In addition, the company’s significant market share in India has also contributed to the high demand for its shares. India is one of the largest consumers of fish protein products, and Mukka Proteins has successfully captured a substantial portion of this market. This market dominance gives the company a competitive edge and further enhances its growth prospects.
The oversubscription of Mukka Proteins’ IPO is a clear indication of the strong investor interest in the company. Non-institutional investors, qualified institutional buyers, and retail investors have all shown a high level of confidence in the company’s future prospects, leading to a significant oversubscription of the shares.
Overall, the expected premium at listing reflects the positive sentiment surrounding Mukka Proteins and its potential for future growth. Investors are optimistic about the company’s ability to capitalize on the growing demand for fish protein products and deliver strong returns in the long run.
Mukka Proteins has successfully cultivated a loyal customer base and forged enduring partnerships with key aqua feed, poultry feed, and pet food manufacturers. By strategically locating their facilities, the company ensures easy access to vital raw materials like sardine, mackerel, and anchovy, reducing dependence on a single coastal landing site and fish catchments. This approach, as stated by Mudaraddi, helps mitigate dependency risks.
In addition to catering to the domestic market, Mukka Proteins exports its products to more than 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam. The company has also delivered impressive financial results, with a notable 84 percent increase in net profit to Rs 47.5 crore and a 53 percent growth in revenue from operations, reaching Rs 1,177.1 crore for the fiscal year ending in MarchFY23.
Goel further highlighted that Mukka Proteins has a strong presence in the aquaculture industry, catering to the increasing demand for high-quality fish meal and fish oil products. The company’s focus on innovation and sustainability has allowed it to maintain a competitive edge in the market.
Additionally, Mukka Proteins has been expanding its operations globally, tapping into new markets and establishing strategic partnerships to further enhance its market position. With a strong track record of delivering consistent growth and profitability, the company is well-positioned to capitalize on the growing demand for aquaculture products.
Overall, Goel’s optimistic outlook on Mukka Proteins’ potential listing gain reflects the company’s strong fundamentals and growth prospects in the industry. Investors are likely to be attracted to the company’s solid performance and market position, making it a promising investment opportunity in the coming years.
The company has a total of six manufacturing facilities, with four located in India and two in Oman. Additionally, it operates three blending facilities and five storage facilities in India. These facilities are strategically positioned near the coastline.
Meanwhile, market observers have noted that Mukka Proteins’ IPO shares have generated significant interest in the grey market, trading at a premium of around 125 percent above the issue price. The grey market serves as an unofficial platform for the buying and selling of IPO shares before they are officially listed.
Through the IPO, the company successfully raised Rs 224 crore, which consisted entirely of a fresh issue component. The funds from the fresh issue will primarily be used for the company’s working capital requirements, as well as for associate company Ento Proteins and general corporate purposes.
The public issue had a price range of Rs 26-28 per share.