Mukka Proteins refiles DRHP with Sebi to launch IPO

Mukka Proteins has refiled its draft red-herring prospectus (DRHP) with capital markets regulator Sebi to launch its initial public offering (IPO). The Mangaluru based company had earlier filed its draft papers with the regulator in March 2022. The equity shares are proposed to be listed on the BSE and NSE. According to the draft papers, the issue entirely consists of issuance of up to 8 crore fresh equity shares with a face value of Re 1 each. The promoters and existing shareholders of the company will not offload any stake in the primary offering. Fedex Securities is the sole book-running lead manager and Cameo Corporate Services is the registrar to the offer. Mukka Proteins manufactures fish meal, fish oil and fish soluble paste, an essential ingredient in the manufacturing of aqua feed (for fish and shrimp), poultry feed (for broiler and layer) and pet food (dog and cat food). Net proceeds from the issue will be utilized towards  working capital requirements, investment in its associate, that is, Ento Proteins Private Limited and its working capital requirements and general corporate purposes, the DRHP said. Not more than 50 per cent of the issue shall be allocated to qualified institutional buyers (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the shares. Retail investors will get the remaining 35 per cent of the shares. Mukka Proteins is one of the key players of the Fish Protein industry in India and consistently being awarded by the Marine Products Export Development Authority (MPEDA) for its export performance. It has six manufacturing facilities, of which two are held through its foreign subsidiary, namely Ocean Aquatic Proteins LLC, based in Oman, while four are located in India. The company runs five storage facilities and three blending facilities in India along strategically significant coastlines. The Company manufactures fish oil which is used in the production of soap, leather tanneries, and the paint industry. Omega-3 pills and other related products produced from fish oil are also becoming more popular as healthful and high-nutrient dietary supplements. The company sells its products in domestic markets along with more than ten countries, including Bahrain, Bangladesh, Chile, China, Indonesia, Malaysia, Myanmar, Philippines, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam. The company reported a net profit at Rs 25.82 crore with revenue from operations at Rs 770.50 crore for the financial year 2021-22. For the nine months ended December 31, 2022, revenue from operations stood at Rs 756.41 crore and profit after tax stood at Rs 25.60 crore.

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