Mukka Proteins Limited IPO – Get Date, Price, Review and Details

In this article, we will discuss:

• Business Overview
• Objects of Issue
• Key Strengths
• Risks
• Financial Snapshot

Business Overview:

Mukka Proteins Ltd formerly known as Mukka Sea Food Industries Ltd incorporated in the year 2003 deals in the manufacturing of fish protein products. It also manufactures and supplies fish meal, fish oil, and fish soluble paste which is an essential ingredient in the manufacturing of aqua feed (for fish and shrimp), poultry feed (for broilers and layers), and pet food (dog and cat food).

It is amongst the first few companies to commercialize insect meal and insect oil as an ingredient for aqua feed, animal feed, and pet feed.

The company exports products to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan, and Vietnam. As of March 31, 2023, the workforce of the company comprises 385 employees from various departments, including skilled and unskilled labor, administration, management, and operations.

Its facilities are near the coastline helping them with fresh, adequate, and cost-effective access to the key raw materials. E.g. Sardine fish, mackerel fish, etc. This also helps to maintain high product quality and optimize the transport cost.

Objects of Issue:

• Funding working capital requirements of the company,
• Investment in associate, Ento Proteins Private Ltd, for funding the working capital,
• Balance general corporate purposes.

Key Strengths:

• The company is a leading manufacturer and exporter of fish protein products.

• Established customer base and strong relationships.
• Experienced promoters and directors with extensive domain knowledge.
• Tailwinds in the form of several government initiatives such as Pradhan Mantri Matsya Sampada Yojana, an extension of Kisan Credit card to fish & animal husbandry farmers, and Pradhan Mantri Kisan Samridhi Sah-Yojana.

Risks:

• Pending legal proceedings, any adverse decision in such proceedings may have a material adverse effect on our business and financial condition.
• Concentrated customer mix, most revenue is generated from a limited number of customers. Top 10 customers contribute to 72.3% of the revenues as of Sept 30, 2023.
• Livestock diseases, especially in shrimp and poultry, can significantly hinder the operations in supplying to the aqua feed, poultry feed, and pet food industry.
• The industry in which this entity operates remains is highly cyclical due to its dependence on global demand.

Financial Snapshot: