Grey Market Indicates Doubling Of Investment In This IPO, Last Day Today

Mukka Proteins IPO, which opened on Thursday, has garnered significant attention and support from investors, signalling a promising start for the company’s public offering. Notably, the unlisted shares of the IPO are generating considerable buzz in the grey market, trading at a premium of 100 per cent (Mukka Proteins IPO GMP). The subscription rate for the IPO stood at an impressive 6.97 times within the initial two days of the offering, with the deadline for bidding set for tomorrow, March 4. The company had already secured Rs 67.20 crore from anchor investors on February 28.

Mukka Proteins is one of India’s largest fish meal and fish oil manufacturers, with a significant presence in the global market. The company exports to over 15 countries and specialises in producing fish meal, fish oil, and soluble paste- an essential component in aqua feed, poultry feed and pet food manufacturing. Currently operating six plants across the nation, Mukka Proteins has seen a substantial 53 per cent increase in revenue from operations during the financial year 2022-23. Moreover, its EBITDA witnessed growth rates of 22 per cent and 40 per cent in FY22 and FY23, respectively.

The company aims to raise Rs 224 crore through this IPO, issuing 8 crore new shares priced between Rs 26 to Rs 28 per equity share at Re 1 face value. With one lot comprising 535 equity shares, retail investors can bid for a maximum of 13 lots, requiring a minimum investment of Rs 14,980. The IPO distribution reserves more than 50 per cent of shares for Qualified Institutional Buyers (QIBs), with 15 per cent allocated to non-institutional investors (NIIs) and 35 per cent for retail investors.

While Mukka Proteins IPO shares are commanding a premium in the GMP grey market, trading at Rs 28 above the upper price band, investors need to exercise caution. Despite the positive indicators, there’s no guarantee that the IPO, despite its grey market premium, will necessarily translate into listing profits. Investors should remain vigilant and conduct thorough research before making investment decisions in IPOs.