Bumper Listing: Mukka Proteins Is Listed On Exchanges At A 43% Premium Above IPO Price; Is It Time To Buy?
Leading producer of fish protein products Mukka Proteins had a spectacular start on the stock market when its shares were offered for Rs 40 per share, 42.86% more than the price of Rs 28 per share during its initial public offering (IPO). The gray market premium indicates that, despite the listing’s strength, the market did not anticipate a triple-digit premium.
Strong interest was seen in the IPO, which was oversubscribed 136.99 times. Leading the way were non-institutional investors, who subscribed a whopping 250.38 times the number of shares they were allocated. Retail investors bid 58.52 times the amount set aside for them, while qualified institutional purchasers subscribed at a pace of 189.28 times.
Reiterating their optimistic outlook on Mukka Proteins, analysts pointed to the company’s substantial market dominance, excellent industry positioning, and strong customer base as major drivers of investor confidence in the IPO.
Mukka Proteins, a company well-known for selling its goods both nationally and in over ten other nations, has always produced remarkable financial outcomes. The firm recorded an astounding 84% year-over-year increase in net profit in the fiscal year 2023, hitting Rs 47.5 crore. Operational revenue also saw a significant increase, rising by 53% to Rs 1,177.1 crore.
Through the IPO, the firm was able to successfully collect Rs 224 crore, all of which was distributed as a new share offering. The money raised will be used by Mukka Proteins to support both its own and its associate Ento Proteins’ working capital needs. In addition, the money will be used to accomplish overall business goals.
Investor trust in Mukka Proteins’ development potential and strategic actions to strengthen its market position is shown by the company’s impressive market debut. The debut premium for the maker of fish protein products was not triple digits, but the listing at Rs 40 per share represents a promising beginning for the company on the public market.
Market watchers think Mukka Proteins is well-positioned for long-term success because of its growth goals and unwavering commitment to producing high-quality goods. The favorable feeling among investors is further shown by the high reaction to the IPO, which suggests that the company’s stock may rise in the next months.
Notice: The views expressed here are those of individual analysts and may not necessarily represent those of GoodReturns or the author. Before making any financial choices, we advise investors to speak with licensed professionals.
