Mukka Proteins
The initial public offering (IPO) market has been buzzing with activity this year, and Mukka Proteins Ltd. is one of the latest entrants. The company, a prominent player in the fish protein sector, has opened its IPO for subscription. This article provides a detailed analysis of the Mukka Proteins IPO, including the Grey Market Premium (GMP), subscription status, and experts’ reviews.
Company Profile: Mukka Proteins Ltd.
Mukka Proteins Ltd., based in Mangalore, is a leading manufacturer and seller of fish meal, fish oil, and fish-soluble paste. With a five-year rich heritage, the company is one of India’s pioneers in the fishmeal industry. The company’s products have high demand domestically and in over 10 countries, including China, Chile, Japan, and South Korea.
IPO Details
The IPO opened for subscription on February 29, 2024, and will remain open until March 4, 2024. The issue involves a fresh issue of 8 crore equity shares, raising a total of INR 224 crores. The IPO price band has been set at INR 26-28 per equity share, and the lot size is 535 shares.
Subscription Status
On the first day of bidding, the IPO was subscribed 0.32 times, with retail investors showing considerable interest. By the second day, the subscription status had surged to 6.97 times. The IPO’s strong response indicates a bullish sentiment among investors.
Grey Market Premium (GMP)
The GMP, an indicator of the market’s readiness to pay more than the issue price, is a crucial factor for potential investors. The Mukka Proteins IPO GMP stands at INR 15, suggesting a listing gain of 53.57% from the issue price.
Should You Subscribe?
Several brokerage houses and market experts have debated whether investors should subscribe to the Mukka Proteins IPO.
Anand Rathi, a reputable brokerage, has assigned a ‘Subscribe-Long Term’ rating to the IPO. According to their report, Mukka Proteins Ltd. presents a compelling 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 based on FY24 earnings, which is considered fair.
Master Capital Services Ltd also recommends subscribing to the IPO with a medium to long-term perspective. They note the company’s rich legacy and potential for growth in value and volume in the fiscal year 2023.
Analysts’ Take
Analysts are optimistic about the company’s prospects. They note the company’s consistent revenue growth, high entry barriers, and innovative product portfolio. The company’s strong market position, global presence, and expansion plans also make it an attractive investment opportunity.
Final Thoughts
The Mukka Proteins IPO offers a unique investment opportunity in the fish protein industry. With a strong market position, consistent financial performance, and a positive outlook, the IPO has garnered significant interest among investors. However, as with any investment, potential investors should carefully consider their financial goals and risk tolerance before deciding to invest.
Disclaimer:
The views expressed in this article are those of the author and do not necessarily reflect the views of the publisher. This article is for informational purposes only and should not be considered as investment advice. Investors should consult with a certified financial advisor before making any investment decisions.
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