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Business News/ Markets / Ipo/  Mukka Proteins IPO Day 2: Check GMP, subscription status, review, key dates, more. Should you subscribe or not?
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Mukka Proteins IPO Day 2: Check GMP, subscription status, review, key dates, more. Should you subscribe or not?

Mukka Proteins IPO opened on February 29 and closes on March 4. Price band set at ₹26 to ₹28 per share with lot size of 535 shares. Reserved shares for QIB, NII, and retail investors as per SEBI guidelines. Mukka Proteins IPO worth ₹224 crore comprises fresh issue of 8,00,00,000 equity shares.

Mukka Proteins IPO opened for subscription on Thursday, February 29, and will close on Monday, March 4 (https://www.mukkaproteins.com/)Premium
Mukka Proteins IPO opened for subscription on Thursday, February 29, and will close on Monday, March 4 (https://www.mukkaproteins.com/)

Mukka Proteins IPO opened for subscription on Thursday, February 29, and will close on Monday, March 4. Mukka Proteins IPO raised 67.20 crores from anchor investors on Wednesday, February 28. The company notified the exchanges that it allocated 2,39,99,565 equity shares to anchor investors.

Mukka Proteins IPO price band has been fixed in the range of 26 to 28 per equity share of the face value of Re 1. Mukka Proteins IPO lot size is 535 equity shares and in multiples of 535 equity shares thereafter.

Mukka Proteins IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Also Read: Mukka Proteins IPO: Price band set at 26-28 apiece, check issue size, key dates, more

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Mukka Proteins IPO details.
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Mukka Proteins IPO details.

Mukka Proteins Ltd manufactures and sells fish meal, fish oil, and fish soluble paste, which are necessary components in the production of aqua feed (for fish and prawns), poultry feed (for grill and layer), and pet food (dog and cat chow).

Three of the company's promoter directors, Kalandan Mohammed Haris, Kalandan Mohammed Arif, and Kalandan Mohammed Althaf, are actively involved in the business.

As per the company's RHP, its listed peers are Avanti Feeds Ltd (with a P/E of 25), Godrej Agrovet Ltd (with a P/E of 33.23), Zeal Aqua Ltd (with a P/E of 20.63), and Waterbase Ltd.

Between March 31, 2022, and March 31, 2023, Mukka Proteins Limited's profit after tax (PAT) scaled by 84.07%, while revenue jumped by 52.52%.

Mukka Proteins IPO subscription status
 

On the second day, Mukka Proteins IPO subscription status is 6.97 times, as per BSE data. The retail investors portion has been subscribed 10.21 times, Non Institutional Investors (NII) portion is booked 6.22 times, and Qualified Institutional Buyers (QIB) portion is booked 1.86 times.

Mukka Proteins IPO had a solid start on its first day of opening, with its retail portion being fully subscribed within the first two hours of opening and later the issue was fully booked. 

Mukka Proteins IPO subscription status was 2.47 times on day 1, as per BSE data.

On day 1, Mukka Proteins IPO retail investors portion has been subscribed 3.70 times, Non Institutional Investors (NII) portion is booked 1.55 times, and Qualified Institutional Buyers (QIB) portion is booked 1.01 times.

Also Read: Mukka Proteins IPO's retail portion fully booked within hours of opening. Check GMP, subscription status, more.

Mukka Proteins IPO details

Mukka Proteins IPO, which is worth 224 crore, comprises a fresh issue of 8,00,00,000 equity shares with a face value of Re 1. This is a completely a fresh issue, and there is no offer-for-sale component.

The company intends to use the net proceeds from the issue, as stated in the red herring prospectus (RHP), to fund the following: general corporate purposes, investment in their associate, Ento Proteins Private Limited, to fund its working capital requirements, and funding the company's working capital requirements.

The registrar for the Mukka Proteins IPO is Cameo Corporate Services Limited, while the book running lead manager is Fedex Securities Pvt Ltd.

Also Read: Mukka Proteins IPO: Mangaluru-based firm raises 67.20 crore from anchor investors ahead of IPO

Mukka Proteins IPO GMP price today

Mukka Proteins IPO GMP or grey market premium is +28. This indicates Mukka Proteins share price were trading at a premium of 28 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Mukka Proteins share price was indicated at 56 apiece, which is 100% higher than the IPO price of 28.

Based on last 25 sessions grey market activities, today IPO GMP trending upward and expects a strong listing. The lowest GMP is 0, while the highest GMP is 28, as per investorgain.com analysts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Mukka Proteins IPO Review

“Mukka Proteins is a numero uno company in fish meals, fish oils and related allied products with 25-30% market share domestically. It also has good demand in global markets. The company has posted growth in its top and bottom lines for the reported periods. Based on FY24 annualized earnings, the issue appears reasonably priced. The company may attract first mover fancy post listing. Investor (who have no reservation for the segments) may lap it up for the medium to long term rewards," said Dilip Davda, the contributing editor at Chittorgarh.

Also Read: Mukka Proteins IPO opens tomorrow: GMP, issue details, 10 key things to know before investing to 224-crore issue

BP Wealth

According to the brokerage, the company has a track record of consistent consolidated revenue from operations, with growth of 39.3% CAGR from FY21 to FY23. High entry barriers, steady financial performance, and cutting-edge goods, as per the brokerage, have all contributed to the company's successful business growth.

" As we advance, Mukka Proteins Ltd. presents a persuasive investment opportunity in the fish protein industry, given its strong market position, diversified product portfolio, and global presence. The issue is valued at a P/E of 9.3x on the upper price band based on FY24 earnings, which is fairly valued. We, therefore, recommend an SUBSCRIBE rating for the issue," the brokerage said.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 29 Feb 2024, 08:37 AM IST
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