Mukka Proteins IPO Oversubscribed 83.1x, Led by NIIs and Retail Investors
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Mukka Proteins IPO Oversubscribed 83.1x, Led by NIIs and Retail Investors

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Mukka Proteins IPO Oversubscribed 83.1x, Led by NIIs and Retail Investors

The much-anticipated initial public offering (IPO) of Mukka Proteins, a leading manufacturer of animal feed ingredients, concluded today, March 4, 2024, on a robust note. The issue received overwhelming investor interest, leading to an oversubscription of 83.1 times. This strong demand was primarily driven by non-institutional investors (NIIs) and retail investors, indicating broad market confidence in the company’s growth prospects.

Strong Investor Participation:

The Mukka Proteins IPO witnessed significant participation from both institutional and retail investors. According to reports, NIIs played a leading role, subscribing to the issue over 47 times, showcasing their faith in the company’s long-term potential. Retail investors, too, displayed strong enthusiasm, with the issue booked 36 times by this category. This balanced participation from both segments reflects the overall positive sentiment surrounding the IPO.

Mukka Proteins IPO Oversubscribed 83.1x, Led by NIIs and Retail Investors
Mukka Proteins IPO Oversubscribed 83.1x, Led by NIIs and Retail Investors  (Image Source: Google)

Factors Driving Demand:

Several factors likely contributed to the high demand for the Mukka Proteins IPO:

  • Growth Industry: The animal feed industry in India is expected to witness significant growth in the coming years, driven by factors such as rising disposable incomes, increasing demand for protein-rich diets, and growing livestock population. Mukka Proteins, as a prominent player in this space, is well-positioned to benefit from this trend.
  • Strong Financials: The company boasts strong financial performance with consistent revenue and profit growth. This financial stability likely instilled confidence in investors, particularly NIIs who seek financially sound companies for long-term investments.
  • Brand Recognition: Mukka Proteins enjoys a well-established brand reputation within the animal feed industry, known for its high-quality products and extensive distribution network. This brand recognition likely attracted retail investors seeking to invest in established companies with a strong track record.
  • Attractive Valuation: Compared to its peers, Mukka Proteins was offered at a relatively attractive valuation, making it an appealing investment proposition for both institutional and retail investors seeking value for their money.

Grey Market Premium (GMP):

The Grey Market Premium (GMP) for the Mukka Proteins IPO is currently positive, even though the official allotment date has not yet been published. The unofficial premium that shares of an unlisted firm trade for on the gray market is known as the GMP. Potential listing gains for successful candidates are indicated by a positive GMP. It’s important to keep in mind still that GMP is unofficial and does not guarantee a listing price or future performance. Before making any investing decisions based only on GMP, investors should use care and do extensive research.

What is the history of Mukka Proteins?

What is Mukka Proteins Company?

Mukka Proteins Limited is an animal protein manufacturer that specializes in making fish oil, fish meal, and fish-soluble paste. In addition, they are creating substitute proteins for the animal food market, like Black Soldier Fly (BSF) Insect meal. The manufacture of aqua feed (for fish and shrimp), poultry feed (for broilers and layers), and pet food (for dog and cat chow) all heavily depends on their goods. Mukka Proteins has become one of India’s top exporters in this field by emphasizing quality and innovation.

How much money did they raise in the IPO?

Mukka Proteins Limited successfully concluded its initial public offering (IPO), raising ₹224.00 crores through the issuance of 8 crore shares. The price band for the IPO ranged from ₹26 to ₹28 per share.

The offering was structured as follows:

  • Qualified Institutional Investors (QIBs): 20% of the total issue size.
  • Non-Institutional Investors (NIIs): Further divided into two categories:
    • Small Non-Institutional Investors (sNIIs): 15% of the shares with a minimum lot size of 7,490 shares (minimum investment of ₹209,720).
    • Big Non-Institutional Investors (bNIIs): Allocated the remaining 15% of the shares with a minimum lot size of 35,845 shares (minimum investment of ₹1,003,660).
  • Retail Individual Investors (RIIs): Received 35% of the net issue size with a minimum lot size of 535 shares, requiring a minimum investment of ₹14,980.

Who are some of their competitors?

Mukka Proteins faces competition from both domestic and international players in the animal feed ingredients market. Here are some of their key competitors:

Domestic Competitors:

  • Avanti Feeds Limited: A leading player in the Indian animal feed industry, known for its poultry and aqua feed products.
  • Godrej Agrovet Limited: A diversified agri-business company with a strong presence in the animal feed segment.
  • Waterbase Limited: A leading manufacturer of fish meal and fish oil products, competing with Mukka Proteins directly in this area.
  • Zeal Aqua Private Limited: A major player in the shrimp and fish feed industry, competing with Mukka Proteins in specific product segments.

International Competitors:

  • Darling Ingredients Inc.: A global leader in the production of rendered animal products and specialty feed ingredients.
  • C.P. Vietnam Corporation: A major player in the Southeast Asian animal feed market, with a growing presence in India.
  • Nuteese Pty Ltd.: An Australian company specializing in high-quality fish meal and fish oil products, targeting the aquaculture industry globally.

Looking Ahead:

With the strong oversubscription witnessed during the bidding process, Mukka Proteins is expected to have a successful listing on the stock exchanges. However, investors should remain cautious and conduct their own due diligence before investing in the company. They should carefully consider their risk appetite, investment goals, and overall portfolio diversification before making any investment decisions.

Read This Also: Platinum Industries Limited Announces IPO with Price Band of Rs. 162-171, Opening on Feb 27

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