Mukka Proteins, a manufacturer of fish protein products, is anticipated to make its debut with a substantial 125 percent premium over the issue price on March 7, drawing significant interest from investors. Experts attribute this high anticipation to several factors, including the robust subscription to the company’s IPO, its strong customer base, solid positioning in the industry, and impressive financial performance over the past years.
During the subscription period from February 29 to March 4, Mukka Proteins’ IPO, valued at Rs 224 crore, saw overwhelming demand, with non-institutional investors subscribing 250.38 times, qualified institutional buyers 189.28 times, and retail investors 58.52 times the allotted quota.
Analyst Dhruv Mudaraddi from Stoxbox predicts the stock to list at a premium of approximately 125 percent over the issue price of Rs 28 per share. He highlights Mukka Proteins’ strong customer relationships and strategic facilities that provide access to key raw materials, minimizing dependency on specific coastal landing sites.
Amit Goel, co-founder and chief global strategist at Pace 360, shares a similar sentiment, expecting the stock to list between Rs 63-67 with a corresponding gain of around 125 percent. Goel emphasizes Mukka Proteins’ significant market share in India and its consistent revenue and profit growth.
The IPO shares of Mukka Proteins have also attracted substantial interest in the grey market, trading at a similar 125 percent premium over the issue price.
The company plans to utilize the proceeds from the IPO, which comprises only a fresh issue component, mainly for its working capital requirements and general corporate purposes.
Source: MoneyControl.com
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