Mukka Proteins lists at 57% premium at Rs 44 per share

Mukka Proteins Limited manufactures fish protein products, producing and supplying fish meal, fish oil, and fish soluble paste, debuted on the Indian stock market today.

The company’s stock opened at Rs 44 per share on the BSE, reflecting a substantial 57.14% premium over the final issue price of Rs 28 per share. The market capitalisation on the BSE stands at Rs 1320 crore. Conversely, on the NSE, the stock debuted at Rs 40 per share with a premium of 42.86%.

IPO Proceeds:

The Company intends to utilise the Net Proceeds from the Issue for specific purposes. These include funding the working capital requirements of the Company and making investments in the Associate, namely Ento Proteins Private Limited to support its working capital needs, and for general corporate purposes.

Business Overview:

Mukka Proteins Limited manufactures fish protein products, producing and supplying fish meal, fish oil, and fish soluble paste. These products serve as essential ingredients for the production of aqua feed (for fish and shrimp), poultry feed (for broilers and layers), and pet food (for dog and cat food).

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

Currently, the company operates six production facilities, with four located in India and two in Oman, held by its foreign subsidiary, Ocean Aquatic Proteins LLC. Additionally, the company runs three blending plants and five storage facilities, all situated in India.

Subscription details:

On March 04, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 136.99 times. The public issue received remarkable interest, with the retail category being subscribed 58.52 times, while the QIB and NII categories reached a subscription rate of 189.28 and 250.39 times respectively.

The IPO price band was between Rs 26 to Rs 28 per share, with a face value of Rs 1 per share and a lot size of 535 shares. The total size of the company’s IPO was Rs 224 crore, and the final share issue price was fixed at Rs 28 each.

Conclusion:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 57% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.