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.
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.
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.
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
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.
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.