MUMBAI, 18 JUNE, 2023 (GPN): Mangaluru-based 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) has refiled its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
It had earlier filed its draft papers with the regulator in March 2022.
The issue has a face value of Re 1 per equity share is entirely a fresh issue of up to 8 crore equity shares.
Of the total net proceeds to be raised through the issue, the company proposes to utilise up to Rs 120 crore towards working capital requirements, up to Rs 10 crore for investment in its associate, Ento Proteins Private Limited, for funding its working capital requirements besides general corporate purposes, as per information in the DRHP.
The Issue is being made through the Book Building Process, wherein not more than 50% of the Issue shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.
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. In Fiscal 2022, the company contributed 45%-50% of the estimated ₹1,300 to ₹1,700 crore revenue of the Indian fish meal and fish oil industry, according to a CRISIL report mentioned in the DRHP.
Mukka Proteins led by Kalandan Mohammed Haris, Managing Director and CEO, Kalandan Mohammad Arif, Whole-Time Director and COO and Kalandan Mohammed Althaf, Whole-Time Director and COO with a collective experience of over 5 (five) decades in the Indian Marine Industry.
It has 6 (six) manufacturing facilities, of which 2 (two) are held through its Foreign Subsidiary, namely Ocean Aquatic Proteins LLC, which is based in Oman and 4 (four) are located in India. Additionally, the company runs 5 (five) storage facilities and 3 (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. Additionally, to selling its goods domestically, it exports its products to more than ten countries, including Bahrain, Bangladesh, Chile, China, Indonesia, Malaysia, Myanmar, Philippines, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam.
On a consolidated basis, Mukka Proteins Limited’s revenue from operations grew 27.60% from ₹603.83 crore in Fiscal 2021 to ₹770.50 crore in Fiscal 2022 primarily due to an increase in sales volumes of fish meal and fish soluble paste; and increase in selling price of fish meal, resulting in high realization per ton of sale and profit after tax increased 134.50% to ₹25.82 crore in Fiscal 2022, from ₹11.01 crore in Fiscal 2021.
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.
Fish meal is predominantly used in high protein Compound Feeds. The demand for fish meal and fish oil in India driven by the aquaculture industry. The production of fish meal and fish oil depends on the natural availability of fishes and prevailing climatic conditions. In value terms the industry is expected to grow at of 5-9% between fiscal 2022 and 2026 reaching ` 16-20 billion. Insect based nutrition is emerging as a new source of protein in the global animal feed industry led by various factors such as high protein content, less water and land requirement, etc., according to a CRISIL Report.
Fedex Securities Private Limited is the sole book-running lead manager and Cameo Corporate Services Limited is the registrar to the offer. The equity shares are proposed to be listed on the BSE and NSE.Ends
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