Mukka Proteins IPO : As the Mukka Proteins Initial Public Offering (IPO) nears its closing date on March 4, 2024, investors are closely monitoring the developments surrounding this fish protein products maker company. The IPO has garnered significant attention due to its robust subscription status, positive analyst reviews, and bullish market sentiments.
Subscription Status:
By 10:54 AM on day 3 of the bidding, the Mukka Proteins IPO was oversubscribed an impressive 23.25 times. The retail portion saw a subscription rate of 19.68 times, showcasing strong interest from individual investors. Non-Institutional Investors (NII) demonstrated remarkable enthusiasm with a subscription rate of 59.80 times, underlining substantial demand from this investor category. The Qualified Institutional Buyers (QIB) segment, although slightly lower, still exhibited healthy interest with a subscription of 2.07 times.
Additionally, the retail portion and NII portion were subscribed 10.20 times and 6.22 times, respectively, while the QIB segment was subscribed 1.86 times.
This IPO Attracts Strong Market Interest: Grey Market Premium Reaches ₹30
Grey Market Premium Surges Amidst Strong Investor Sentiment
Market observers have closely monitored the Grey Market Premium (GMP) for Mukka Proteins IPO, revealing a notable uptick. The current Grey Market Premium stands at ₹30, indicating a ₹2 increase compared to Friday’s GMP of ₹28. This surge is primarily attributed to the robust response from primary market investors coupled with the prevailing bullish trend in the Indian stock market.
Mukka Proteins IPO Subscription Status – Overwhelming Demand Across Segments
As of the third day of the IPO bidding process, Mukka Proteins Limited has witnessed overwhelming subscription rates across different investor segments. The total subscription stands at a remarkable 23.25 times, showcasing the high demand for the company’s shares. Notably, the retail portion has been subscribed 10.20 times, indicating a strong interest from individual investors. The Non-Institutional Investors (NII) portion has seen an impressive subscription of 6.22 times, while the Qualified Institutional Buyers (QIB) segment is subscribed 1.86 times.
IPO Details and Timeline
The Initial Public Offering of Mukka Proteins Limited commenced on Thursday, February 29, 2024, and is scheduled to conclude on Monday, March 04, 2024. The company aims to raise a total of ₹224 crore through the issuance of fresh shares, with the IPO price band set at ₹26 to ₹28 per equity share.
Analyst Reviews and Recommendations
BP Equities, in their comprehensive review, has given a ‘subscribe’ tag to the book build issue. They highlighted Mukka Proteins Limited’s consistent financial performance, growing at a CAGR of 39.3% during FY21-23. The company’s strong market position, diversified product portfolio, and global presence make it a compelling investment opportunity. The issue is valued at a P/E of 9.3x on the upper price band based on FY24 earnings, which BP Equities considers fairly valued.
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, has expressed a positive outlook, recommending a ‘buy’ tag for the Mukka Proteins IPO. He emphasized the company’s profitability, high demand for its fish protein products in the overseas market, and attractive valuations.
Analyst Reviews:
Several financial experts have shared their insights on the IPO, contributing to the overall positive sentiment:
BP Equities gave a ‘subscribe’ rating, emphasizing the company’s sustained consolidated revenue growth at a CAGR of 39.3% during FY21-23. The firm highlighted high entry barriers, consistent financial performance, and innovative products as factors driving the company’s success. With the issue valued at a P/E of 9.3x on the upper price band based on FY24 earnings, BP Equities sees it as fairly valued and recommends a ‘SUBSCRIBE’ rating for the issue.
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, provided a ‘buy’ recommendation. He emphasized Mukka Proteins Limited’s profitability and the high demand for its fish protein products in the overseas market. Kejriwal also noted that the shares have been offered at attractive valuations, suggesting that investors can apply for the public issue with the expectation of potential listing gains.
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Frequently Asked Questions (FAQs) – Mukka Proteins IPO
1. What is the current Grey Market Premium (GMP) for Mukka Proteins IPO?
- The Grey Market Premium for Mukka Proteins IPO is currently at ₹30, reflecting a ₹2 increase from Friday’s GMP of ₹28. This surge is attributed to a strong response from primary market investors and the prevailing bullish trend in the Indian stock market.
2. Can you provide an overview of Mukka Proteins IPO subscription status?
- As of the third day of the IPO bidding process, Mukka Proteins Limited has been oversubscribed by an impressive 23.25 times. The retail portion is subscribed 10.20 times, the Non-Institutional Investors (NII) portion is subscribed 6.22 times, and the Qualified Institutional Buyers (QIB) segment is subscribed 1.86 times.
3. When did the Mukka Proteins IPO subscription period begin and end?
- The IPO subscription period for Mukka Proteins started on Thursday, February 29, 2024, and is set to conclude on Monday, March 04, 2024.
4. What is the target fundraising amount for Mukka Proteins IPO, and how are the proceeds intended to be utilized?
- Mukka Proteins Limited aims to raise a total of ₹224 crore through the issuance of fresh shares. The company’s promoters have already secured ₹67.20 crore from anchor investors.
5. What is the IPO price band for Mukka Proteins, and what is the company’s valuation?
- The IPO price band for Mukka Proteins is set at ₹26 to ₹28 per equity share. The issue is valued at a P/E of 9.3x on the upper price band based on FY24 earnings, as per analyst reviews.
6. What are the recommendations from analysts regarding the Mukka Proteins IPO?
- BP Equities has given a ‘subscribe’ rating, citing the company’s sustained revenue growth, high entry barriers, and a diversified product portfolio. Arun Kejriwal, Founder of Kejriwal Research and Investment Services, recommends a ‘buy’ tag, emphasizing Mukka Proteins’ profitability and attractive valuations.
7. Why is there optimism in the market regarding IPO?
- Positive responses from primary market investors, a strong subscription status, and a bullish trend in the Indian stock market contribute to the optimistic sentiment. Additionally, the company’s global presence and innovative products further fuel the positive outlook.
8. How is Mukka Proteins Limited positioned in the fish protein industry?
- Mukka Proteins Limited holds a strong market position in the fish protein industry, with a diversified product portfolio and a record of sustained revenue growth. The company’s products, with high demand in the overseas market, make it a persuasive investment opportunity.
Closing Thoughts:
The positive response from primary market investors, strong analyst recommendations, and the bullish trend in the Indian stock market have collectively fueled the grey market sentiment and investor interest in the Mukka Proteins IPO. With just one day remaining for the subscription window to close, prospective investors are weighing the various factors before making their investment decisions.
Disclaimer: The information provided is based on the latest available data and may be subject to change. Investors are advised to conduct their thorough research and seek professional advice before making any investment decisions.
