Mangaluru-based Mukka Proteins has received final observation from the capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The Company had refiled its draft papers with the regulator in June 14, 2023.
The issue has a face value of Re 1 per equity share is entirely of 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 Mangaluru-based Company 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).
Led by Kalandan Mohammed Haris, 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.
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.
Fedex Securities Private Limited is the sole book-running lead manager and Cameo Corporate Services Limited is the registrar to the offer.