Sebi gives Mukka Proteins permission to launch a public offering

 Sebi gives Mukka Proteins permission to launch a public offering

Mukka Proteins IPO | There isn't an offer for sale; the IPO consists only of the firm issuing 8 crore shares for the first time.

The capital markets regulator Sebi has given the manufacturing business Mukka Proteins permission to go public in order to raise finance.

There isn't an offer for sale in the first public offering (IPO); the corporation is merely issuing 8 crore shares for the first time.

The Karnataka-based company plans to use Rs 120 crore for working capital needs, and it would spend Rs 10 crore on working capital for Ento Proteins, a subsidiary. The remaining net proceeds from the new offering will be retained for general business uses.

According to Sebi jargon, the business is now able to start its public offering after receiving an inspection letter for the draft documents.

On October 30, the regulatory body published a letter of observation on the company's June 2023 submission of a draft red herring prospectus.

Fish meal, fish oil, and fish soluble paste—all necessary components in the production of aqua feed (for fish and shrimp), feed for birds (for broiler and layer), and pet food (dog and cat chow—are supplied by Mukka Proteins, a company with six manufacturing sites. Moreover, fish oil is used in the paint, soap, leather tanneries, and pharmaceutical sectors.

In addition, the corporation has five storage facilities and three blending facilities. In addition to the home market, it sells goods to more than ten nations, including China, Saudi Arabia, Bahrain, Taiwan, Vietnam, Malaysia, Philippines, as well as South Korea.

For the year that ended in March of FY22, Mukka reported a consolidated net profit of Rs 25.8 crore, a considerable increase from Rs 1.1 crore. During the same time, the company's operating revenue increased from Rs 770.5 crore to Rs 603.8 crore.

It declared a net profit of Rs 25.6 crore on sales of Rs 756.4 crore for the nine months ended in December of FY23, which is essentially comparable to the whole previous financial year (FY22).

The registrar of the offer is Flamingo Corporate Services, while the merchant banker for the offering is Fedex Securities.