Mukka Proteins Limited IPO

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The leading company in the Fish Protein industry in India, renowned for its export performance and innovation in the sector. Here’s a structured summary:

Company Profile

  • Industry Recognition: The company has been consistently recognized by the Marine Products Export Development Authority (MPEDA) over the last seven years for its outstanding export performance, especially in exporting fish meal, fish oil, and related products.
  • Market Share: For Fiscal 2023, the company accounted for 25%-30% of the estimated revenue of the Indian fish meal and fish oil industry, which is valued between ₹32,000 million to ₹41,000 million, with the company’s revenue standing at ₹10,663.98 million.
  • Innovation: It is among the first in India to commercialize insect meal and insect oil as ingredients for aqua feed, animal feed, and pet food, alongside its traditional fish protein products.

Product and Services

  • The company manufactures fish meal, fish oil, and fish soluble paste, primarily used in aqua feed, poultry feed, and pet food. Fish oil is also utilized in pharmaceuticals, soap manufacturing, leather tanneries, and paint industries.
  • It has a wide international presence, exporting products to over 10 countries across Asia and the Middle East.

Corporate Evolution

  • Originating as a partnership firm under the name “Mukka Sea Foods Industries” in 2003, it transitioned to a private limited company, showcasing a successful track record of over five decades by its promoters in the Fish Protein industry.

Strategic

  • The company places a significant emphasis on government-approved manufacturing facilities, product quality, and meeting client specifications as key business drivers.
  • It has a strong customer base, with long-term relationships contributing a significant portion of its revenue.
  • Cost of goods sold represents a significant portion of its revenue, indicating the impact of raw material costs on financial performance.

Conclusion

This company stands as a key player and innovator in the Fish Protein industry in India, with a strong operational footprint, a focus on quality and sustainability, and a strategic approach to market expansion and customer relations. Its achievements in both the domestic and international markets underscore its position as a pioneer in the sector.

Objects of the Mukka Proteins Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding working capital requirements of the Company; ii. Investment in the Associate, viz. Ento Proteins Private Limited, for funding its working capital requirements; and iii. General Corporate Purposes.
DRHP of Mukka Proteins Limited IPO
RHP of Mukka Proteins Limited IPO

Mukka Proteins Limited IPO Details:

Open Date: Feb 29 2024
Close Date: Mar 04 2024
Total Shares: 80,000,000
Face Value: ₹ 1 Per Equity Share
Issue Size: 224.00 Cr.
Lot Size: 535 Shares
Issue Price: ₹ 26 - 28 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 07 2024

Promoters And Management:

Karkala Shankar Balachandra Rao, aged 69 years, is the Chairman & Non-Executive Independent Director of the Company. He has been appointed as the Non- Executive Independent Director of the Company on January 15, 2022. He holds a Bachelor’s Degree in Science from Bangalore University, LL.B. from Bangalore University and Associate Certificate from the Indian Institute of Bankers. He has worked for Canara Bank in various capacities from 1973 to 2014. He was previously a Director of Canara Bank Securities Limited from September 16, 2011 to March 31, 2014. He has over 40 years of experience in Banking, Credit, Foreign Exchange etc. Kalandan Mohammed Haris, aged 49 years, is the Promoter of the Company. He is presently serving as Managing Director and CEO of the Company. He was one of the initial partners of the erstwhile partnership firm “Mukka Sea Foods Industries” and upon conversion, on the Board of the Company since its inception. He holds a Bachelor’s Degree of Business Management from International Council for Education and Research, Chennai. He has around 20 years of experience in the fish meal manufacturing industry. He is responsible for the day-today management and business affairs of the Company. He has been actively involved in developing and implementing the Company’s business strategy and overseeing its operations. Presently, he is conferred as the Trade Commissioner- United Arab Emirates by the Asian Arab Chambers of Commerce. Kalandan Mohammed Althaf, aged 44 years, Promoter of the Company. He is presently serving as Whole-Time Director and CFO of the Company. He was one of the initial partners of the erstwhile partnership firm “Mukka Sea Foods Industries” and upon conversion, on the Board of the Company since its inception. He holds a Bachelor’s Degree in Computer Application from International Council for Education and Research, Chennai. He has around 20 years of experience in the fish meal manufacturing industry. He has been actively involved in managing the Company's finances, including financial reporting, budgeting, forecasting, and cash flow management and maintaining the banking relationships. He has also been actively involved in the international business development, sales, and marketing of the Company.

Financials of Mukka Proteins Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 55 220 220
Reserves 602 764 1,258
Borrowings 1,592 1,735 2,548
Trade Payables 1,001 975 1,308
Other Liabilities 290 229 417
Total Liabilities 2,883 2,939 4,274
Net Block 776 813 834
Capital Work in Progress 40 0 0
Investments 132 219 227
Other Assets 27 27 51
Total NC Assets 974 1,059 1,111
Receivables 479 613 1,133
Inventory 1,499 1,649 2,298
Cash & Bank 42 139 290
Other Assets 546 463 920
Face value 1 1 1
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 6,038 7,705 11,771
Raw Material Cost 5,483 6,497 10,136
Change in Inventory -346 -150 -649
Employee Cost 150 194 247
Other Expenses 532 688 1,175
Other Income 61 56 67
Depreciation 83 86 119
EBITDA 280 532 929
EBIDTA Margin 4.64% 6.91% 7.89%
Interest 80 97 165
Profit before tax 155 360 659
Tax 44 102 184
Net profit 110 258 475
NPM (%) 1.81% 3.33% 4.01%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 250 479 848
Receivable -128 -53 -989
Inventory -348 -150 -649
Payable 186 -25 333
Other WC Items 145 -146 24
Working Capital Changes -145 -374 -1,281
Direct Taxes -46 -57 -111
Net Cash Inflow from Operating Activity 59.49 48.08 -543.95
Cash from Investing Activity
Fixed assets purchased -107 -65 -82
Fixed assets sold 5 2 2
Investments purchased -91 -101 -9
Other investing items 57 41 37
Net cash inflow from investing activities -136 -123 -53
Cash from Financing Activity
Proceeds from borrowings 0 -72 -15
Repayment of borrowings 175 215 829
Intrest paid fin -73 -74 -113
Financial liabilities 0 -4 -10
Other financing items -9 94 56
Net Cash Flow 17 84 150

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Mukka Proteins Limited 1177 48 1.58 17.7 28 840
Avanti Feeds Limited 5087 312 20.45 20.3 521 7,100
Godrej Agrovet Limited 9,374 295 15.71 31.6 518 9,963
Zeal Aqua Limited 362 7 0.56 22.3 11.9 150
Waterbase Limited 298 -3 -0.84 N/A 80.6 334
* All the data is as per FY23.

Recommendation on Mukka Proteins Limited IPO:

Review and Recommendation of Mukka Proteins Ltd. by team IZ is 4/10.

Lead Manager of Mukka Proteins Limited IPO:

  1. Fedex Securities Limited

Registrar of Mukka Proteins Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Mukka Proteins Limited Mukka Corporate House, Door, No. 18-2-16/4, First Cross, NG Road, Attavar Dakshina, Kannada, Mangaluru – 575 001 Phone: +918244252889 Email: cs@mukkaproteins.com Website: https://www.mukkaproteins.com/

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