This week’s third interesting IPO has come in front of us. But this IPO is interesting as well as a little controversial. You will understand this in the first line of discussion of IPO (Mukka Proteins Limited IPO).
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Mukka Proteins Limited IPO
If we talk about the basics, the name of the company is Mucca Proteins Ltd. The Mucca Proteins Ltd company was incorporated in 2003 and manufactures fish protein products. Because it is a non-vegetarian company, some people are talking about boycotting it.
This becomes its biggest controversy At the same time, along with being non-vegetarian, there are some litigations going on against it. And in the litigation, their matter is a little messed up. Which becomes the negative or controversial point of this complete IPO.
Mukka Proteins Limited IPO Details
In more than 10 countries today. Mukka Proteins Limited IPO is going to open on 29th of Feb. And will close on 4th of March. Allotment will be decided on 5th of March. On 6th, either you will get a refund or you will get shares. And on 7th of March, the tentative date of its listing has come. 14,980 INR for 1 lot. In HNI small, you have to apply for 14 lots. And in HNI big, you have to apply for 67 lots. Here, the price is from 26 to 28.
That means, you have to apply in retail at a cut-off price. And in HNI category, you have to apply by typing 28 INR. The total IPO of 224 crores is a fresh issue. See, I have already told you the negative points of this Mukka Proteins Limited IPO.
Now, what is the first positive of Mukka Proteins Limited IPO?
The first and biggest positive is that it is a small-sized Mukka Proteins Limited IPO. And it is a small-priced Mukka Proteins Limited IPO. Usually, small-priced IPOs attract a lot of retailers. Although, there is no good reason to attract them. But if they attract, then we have to accept it.
Mukka Proteins Limited Talking about financials
Talking about financials, the total assets of 641 crores have reached. Which has almost doubled in the last 2.5 years.
Talking about revenue, check out 2022 vs 2023. The growth rate is 52.52%. And the profit after tax is almost 84%. It has roughly doubled. And in the last 2 years, 2021 vs 2023, the profit after tax has already quadrupled.
Which is a good figure. The return on equity is 36.71%. The return on capital employed is 17.62%. The debt to equity is a little more at 1.64%. The return on net worth is 34.19%. The object of the issue is that funding is a working capital requirement. They want to invest in their associates and general corporate purpose.
The P-E ratio is 12 for post-IPO. And the EPS is 2.2.
Talk About Its Peer Comparison
The first name in the peer comparison is
Avanti Feeds: Whose P-E ratio is 25.
Godrej Agroved: Whose P-E ratio is 33.
Zeal Aqua: Whose P-E ratio is 20.63.
In the peer comparison, the Mukka Proteins Limited IPO is trying to come on OK OK valuation. That means it has left a little space for listing.
And we are getting to know that from the grey market premium. Because the grey market premium of this Mukka Proteins Limited IPO is more than 60%. That is, it is expected that in the retail category, if you get an allotment of 1 lot.
Then profit above Rs.6500. And in the H&I category, there are expectations of profit above Rs.95,000. The GMB of 60% that I told you was going on till yesterday. As soon as the dip came in the market today. The grey market premium of 60% was reduced to almost 50-53%. But it is still very attractive.
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Now you tell me in the comment.
Will you avoid this IPO because of the non-wage angle and the litigation angle?
Or the grey market premium and the valuation on which the IPO is coming.
It has left a little scope for us comparatively.
You will apply while watching this.
What is your mind making?
Do comment.
