Mukka Protein IPO: Business Model, Key Details, Financial Statements, and SWOT Analysis
Embark on an exciting journey into the aqua-culture sector with the initial public offering (IPO) of Mukka Protein Limited, a leading player in the sustainable seafood industry.
In today’s blog, we’ll cover the company’s business model, key details, financial statements, and SWOT analysis.
Company Overview
Established in 2003 as a partnership firm by K. Abdul Razak, the company was renamed Mukka Protein Limited and became a private limited company in 2010.
The company’s corporate headquarters is located in Mangalore, Karnataka, India.
The company mainly focuses on producing fish meal, fish oil, and fish soluble paste, which are used to make aqua food for fish and shrimp, pet foods for dogs and cats, and poultry feed for broilers and layers.
The company has established production facilities around India’s prominent coastlines, with ten global fishmeal factories — four in Karnataka, four in Gujarat, and two in Oman. Each of their units has a technician for quality control management and dedicated in-house laboratories.
Awards and Accreditations
1. India’s growth champion award by Economic Times.
2. Star exporter awards, by Federation of Karnataka Chamber of Commerce and Industry.
3. State export excellence award by the commissioner for industrial development and director of industries and commerce.
4. Certificate of FT High–Growth Companies Asia Pacific 2023 by financial times and statista.
Promoters
The company’s promoters are Kalandan Mohammed Arif, Kalandan Mohammed Haris, and Kalandan Mohammed Althaf; they own 100% of the shares.
Details of the Issue
The company wants to issue 8 crore new shares to raise a total of 224 crore. With a market lot of 535 shares, the IPO’s lower price band is set at 26 INR, while the higher price band is set at 28 INR per share.
Major details
| Face Value of Share | 1 INR |
| Price Band | 26 – 28 INR |
| Market Lot | 535 Shares |
| Total Fresh Issue Size | 224 Crore |
| Total Number of Shares | 8 Crore |
Timeline of IPO
| IPO Open Date | 29th Feb 2024 |
| IPO Close Date | 4th March 2024 |
| Finalization of Allotment | 5th March 2024 |
| Initiation of Refund & Credit of shares into demat account | 6th March 2024 |
| Listing Date on NSE & BSE | 7th March |
IPO Allotment Size
| Applicant | Market Lot | Share | Amount (INR) |
| Retailer (Min) | 1 | 535 | 14980 |
| Retailer (Max) | 13 | 6955 | 194740 |
| Small High Net Worth Individual (Min) | 14 | 7490 | 209720 |
| Small High Net Worth Individual (Max) | 66 | 35130 | 988680 |
| Big High Net Worth Individual (Min) | 67 | 35845 | 1003660 |
Objective of the Issue
The IPO proceeds will cover the working capital requirements of the company’s associate, Ento Protein Private Limited.
Key Financials of the Company
Balance Sheet
| Particulars | 31st March 2023 | 31st March 2022 | 31st March 2021 |
| Non-Current Asset | 111.122 | 105.911 | 97.415 |
| Current Asset | 464.042 | 286.385 | 256.513 |
| Total Asset | 575.164 | 392.296 | 353.928 |
| Equity | 155.845 | 103.078 | 69.058 |
| Long Term Liability | 16.520 | 12.806 | 17.737 |
| Current Liability | 402.800 | 276.412 | 267.134 |
Income Statement
| Particulars | 31st March 2023 | 31st March 2022 | 31st March 2021 |
| Revenue from operations | 1177.122 | 770.503 | 603.834 |
| Total Revenue | 1183.804 | 776.145 | 609.952 |
| Total Expenses | 1119.322 | 741.177 | 598.317 |
| Profit after tax | 47.525 | 25.819 | 11.010 |
Cash Flow Statement
| Particulars | 31st March 2023 | 31st March 2022 | 31st March 2021 |
| Net Cash flow from operating activities | (54.395) | 4.808 | 5.949 |
| Cash flow from investing activities | (5.258) | (12.284) | (13.611) |
| Cash flow from financing activities | 74.664 | 15.858 | 9.324 |
KPIs
| Particulars | 31st March 2023 | 31st March 2022 | 31st March 2021 |
| EBITDA Margin | 8.01% | 7.04% | 5.27% |
| Return on Equity | 36.71% | 30% | 17.37% |
| Debt Equity Ratio | 1.64 | 1.68 | 2.31 |
| Profit after Tax Margin | 4.04% | 3.35% | 1.82% |
| Return on Capital Employed | 17.62% | 13.86% | 5.86% |
Based on the company’s EPS, the PE ratio on the lower price band will be approximately 13x, and on the upper price band, it will be 14x.
Strengths
1. The industry in which the company works has a high barrier to entry; no new businesses can easily establish themselves in this market.
2. The company has a long history with many of its customers.
3. The business is one of India’s top producers of fish protein products.
4. The company’s management team has extensive business operations expertise.
Risks
1. In FY23, the company’s cash flow from operations was negative. This might come across as a red flag to many investors.
2. The company offers a non-diversified range of products. This exposes the company to the possibility of decreased profitability during unforeseen events.
3. Since the corporation sells goods to multiple nations, it may be exposed to the risk of volatility in exchange rates.
4. Top 10 customers provide the company with 72% of the revenue. Thus, any changes in their contracts could significantly affect their profitability.
Conclusion
We have covered nearly every pertinent aspect regarding Mukka Protein in this IPO blog, including its background and corporate finances. The corporation may see an increase in its market share in the upcoming years due to its expansion ambitions.
If you intend to invest in this firm, please ensure that you have carefully reviewed all of the company’s parameters and considered your risk profile.
Frequently Asked Questions (FAQs)
Q1. When will the Mukka Proteins IPO be listed?
Ans. The listing date of the IPO is March 7, 2024.
Q2. Is Mukka Proteins a profitable company?
Ans. Mukka Protein Ltd. is a profitable business that has consistently reported profits.
Q3. What does Mukka Protein do?
Ans. In addition to fish meal and oils, the company also manufactures and sells animal protein-related items on the domestic and international markets.
Q4. Is revenue concentration a major risk for Mukka Protein?
Ans. Yes, 72% of the revenue is derived from the top 10 customers. This exposes the company to the possibility of incurring losses if these customers alter their contracts.
Q5. How much did the revenue from operations grow for Mukka Proteins?
Ans. Mukka Protein’s revenue from operations grew 95% in 2 years. This massive jump in top line figures indicates the company’s strive for growth.
Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.
