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Mukka Proteins Ltd IPO
Status:
Overview
IPO date
29 Feb 2024 to 04 Mar 2024
Face value
₹ 1 per share
Price
₹ 26 to ₹28 per share
Issue Size
80,000,000 shares
(aggregating up to ₹ 224 Cr)
(aggregating up to ₹ 224 Cr)
Allotment Date
05 Mar 2024
Listing at
NSE
Issue type
Book Building
Sector
Objectives of Mukka Proteins Ltd IPO
Initial public offering of up to 80,000,000^ equity shares of face value of Re. 1/- each ("Equity Shares") of Mukka Proteins Limited ("The Company" or the "Issuer") for cash at a price of Rs. 28 per equity share (including a securities premium of Rs. 27 per equity share) ("Issue Price") aggregating up to Rs. 224.00 crores ("The Issue")^. The issue will constitute 26.67% of its post-issue paid-up equity share capital.
^Subject to finalisation of the basis of allotment
Mukka Proteins Ltd IPO Strategy
- Strengthening its foothold in its existing markets and expanding to new geographies.
- Expanding its presence in new protein source.
- Pursue strategic inorganic growth opportunities.
About Mukka Proteins Ltd
Mukka Proteins Limited was originally incorporated as 'Mukka Sea Food Industries', a Partnership firm in Karnataka on March 13, 2003. Subsequently, the Partnership Firm was thereafter converted to Private Company as 'Mukka Sea Food Industries Private Limited' on November 04, 2010. The Company subsequently got converted into Public Limited Company dated December 02, 2019 in the name of 'Mukka Sea Food Industries Limited' and the name of the Company changed to 'Mukka Proteins Limited' vide a fresh certificate of incorporation issued by ROC-Bangalore, dated August 06, 2021.
The Company manufacture fish meal, fish oil and fish soluble paste, an essential ingredient in the manufacturing of aqua feed (for
fish and shrimp), poultry feed (for broiler and layer) and pet food (dog and cat food). Further, fish oil also finds its application in pharmaceutical products (additionally, the EPA-DHA extraction is used as an ingredient in nutraceuticals), soap manufacturing, leather tanneries & paint industries.
Led by the Founder Promoter, Mr. Kalandan Mohammed Haris, Mukka Group is one of the pioneers in the Fishmeal Industry having set up one of India's first steam sterilised fishmeal plants. They produce Steam Dried Fish Meal, Fish Oil and Fish Soluble Paste from their modern and fully mechanized plant situated in Karnataka and Gujarat, which is geared up to deliver Fish Meal, Fish Oil and Fish Soluble Paste to every corner of the globe. Recently, the Company diversified products by developing alternative proteins such as Black Soldier Fly (BSF) Insect Meal and Insect Oil in the animal food industry.
The Company business is extended to manufacture of High-Quality Fish Meal and Omega-3 Fish Oil which is used as a raw material in aquafeed, poultry feed, pet feed, animal feed, EPA-DHA extraction (use in nutraceuticals - nutrients plus pharmaceuticals), soap manufacture, leather tanneries & Paint industries across globally.
In 2014, the Company commenced International operations in the Middle East.
In 2018, it set up a Manufacturing Facility in Gujarat.
The Company has raised money from public through IPO aggregating upto Rs 224 Crore by issuing 8,00,00,000 Equity Shares through Fresh Issue in March, 2024.
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T&C*
Strengths vs Risks of Mukka Proteins Ltd
Know the pros & cons
Strengths
Its position as a leading manufacturer and exporter of Fish Protein products.- Established customer base and strong relationships.
- Strategically located processing facilities.
- Entry Barriers.
- Strong and consistent financial performance.
- Focus on Quality, Environment, Health and Safety (QEHS).
- Experienced Promoter Directors with extensive domain knowledge.
Risks
- The Company, some of its Subsidiaries, Promoters, Directors and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on the company business, results of operations and financial condition.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect the company operations.
- Introduction of stricter norms regulating the company operation in domestic and overseas market could result in loss due to its inability to meet customer requirement and production schedules, which could materially affect the company business, results of operations and financial condition.
- The company have certain contingent liabilities as stated in the Restated Consolidated Financial Statement, and in the event, they materialize it could adversely affect its financial condition.
- The company has experienced negative cash flows from operating activities and may do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
- The Company is party to a legal proceeding concerning an alleged violation of environmental norms by the Company. An adverse outcome of the proceeding could have an impact on the Company's operations at Mukka Manufacturing Facility I.
- In past, one of the company Promoter Director, Kalandan Mohammed Haris has been subject to search and seizure of property by Directorate of Enforcement in relation to alleged violation of Foreign Exchange Management Act, 1999 against which the company Promoter has filed a Writ Petition against (i) Union of India, (ii) Commissioner of Customs and (iii) Directorate of Enforcement before the Hon'ble High Court of Karnataka, at Bengaluru. An adverse outcome of the proceeding could have an impact on the Company's business, results of operations and financial condition.
- A significant majority of the company revenues from operations are derived from a limited number of customers.
- A majority of the company supplies for the company operations are obtained from a limited number of suppliers.
- Under-utilisation of the company manufacturing capacities and an inability to effectively utilise its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- The company operates in an environmentally sensitive industry and are subject to disruptions due to unpredictable or unseasonal weather.
- There may have been certain instances of non-compliances and alleged non-compliances with respect to certain regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties.
- Man-made factors affecting the pelagic fish populations could adversely affect the company business, financial condition and results of operations.
- The company production and operations are subject to seasonal fluctuations.
- The products that the company manufacture or process is subject to risks such as contamination, adulteration and product tampering during their production, transportation or storage and any failure to provide the specified quality of fish meal, fish oil and fish soluble paste could have a negative impact on the company business.
- The Company does not have any formal long-term arrangements with the suppliers of its key raw material. Any significant variation in the supply may adversely affect the operations and profitability of the Company.
- The company has recently ventured into insect protein business and its may be unable to execute the company strategy to expand the business or find suitable market for insect proteins, which could have a material adverse effect on its business, financial condition and results of operations.
- In respect of the land on which Mukka Manufacturing Facility II is located, the company Licensor's title to the land may be defective on account of failure to obtain necessary written consent of Governor of Karnataka represented by the Director of Ports and Inland Water Transport in Karnataka ("Port Authority") in relation to transfer of licence of the land to Haris Marine Products (now Haris Marine Products Private Limited) or the written consent if at all obtained, is not traceable and the document executed with Marine Enterprises by Haris Marine Products is not duly registered or adequately stamped.
- The company procure raw material from its Associates and the partnership firm, wherein though the Company has made substantial capital contribution, the Company do not control such entities and therefore its interests may not align with the interests of the other stakeholders of such entities.
- The gross margin for the company products could decline and its cannot assure you that the company can maintain its gross margin at the same level in the future.
- The company is subject to the legal and regulatory framework of the international markets where its export the company products and may not always be able to comply with applicable rules and regulations or may be adversely affected in the event of introduction of international trade barriers.
- An inability to comply with applicable health and hygiene standards or quality standards in the company operations and ensure quality of its products may materially and adversely the company business and reputation.
- Intellectual property rights are important to the company business. Failure to get approval for intellectual property rights may adversely affect its business. The company may be unable to protect them from being infringed by others, including its current and / or future competitors/employees which may adversely affect the company business value, financial condition and results of operations.
- The company issusceptible to exchange rate fluctuations.
- The company is dependent on its Promoters Directors for the functioning of the company business and the loss of or its inability to attract or retain such persons could adversely affect the company business, results of operations and financial condition.
- Any inability on the company part to collect amounts owed to it or pay amounts owed by it could result in the reduction of its profits.
- The company senior management team and other key managerial personnel in its business units are critical to the company continued success and its may be unable to attract and retain such personnel in the future.
- The company is currently entitled to certain Export incentives. Any decrease in or discontinuation of such Export incentives or export promotion schemes may adversely affect its results of operations and financial performance.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition and results of operations.
- An inability to effectively manage the company growth and expansion may have a material adverse effect on its business prospects and future financial performance.
- The Company is dependent on third parties for transportation and export of its finished products and any disruption in their operations or a decrease in the quality of their services could have an adverse impact on the company business, financial condition, cash flows and results of operations.
- The company may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.
- Any significant interruption in continuing operations of the company manufacturing or storage facilities could have a material adverse effect on its business, results of operations, cash flows and financial condition.
- In addition to the Manufacturing Facilities, the company enter into arrangement with third-party manufacturers including on job work basis and therefore, the company is subject to risks associated with the third-party manufacturing processes.
- The company business is dependent on the delivery of adequate and uninterrupted supply of electrical power and water at a reasonable cost and any shortage, disruption or non-availability of power and water may adversely affect its entire processing requirements and have an adverse impact on the company business, results of operations and financial condition.
- Activities involving the company manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at any of its facilities may adversely affect the company production schedules, costs, revenue and ability to meet customer demand.
- The company pursuit of inorganic growth opportunities may not be successful and could result in increased costs.
- The company relies on contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on the company results of operations and financial condition.
- Changes in technology may affect the company business by making its processing facilities or equipment less competitive or obsolete.
- Failure to procure and/ or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.
- The company may be unable to attract and retain employees with the requisite skills, expertise and experience, which would adversely affect the company operations, business growth and financial results.
- The Company and its Subsidiaries, during the during the nine months period ended December 31, 2022 Fiscal 2022, 2021 and 2020 had entered into various transactions with its Promoters, some of the members of the Promoter Group and some of the Directors. The Company and its Subsidiaries have in the past entered into Related Party Transactions and may continue to do so in the future also, which may adversely affect the company competitive edge and better bargaining power had these transactions been with non-related parties resulting in relatively more favourable terms and conditions and better margins.
- The company majorly supply its products to aqua feed, poultry feed and pet food industry and outbreaks of any livestock diseases in general, and shrimp and poultry disease in particular, can significantly restrict the company ability to conduct its operations.
- Certain sections of this Draft Red Herring Prospectus disclose information from (i) the CRISIL Report which have been commissioned and paid for by it exclusively in connection with the Issue; and (ii) RaboResearch Report which is a publicly available report and BRLM has obtained consent of RaboResearch for use of the report, by email dated March 10, 2023 and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- The company do not own some of the business premises where its Manufacturing Facilities, Blending Facilities and Storage Facilities are located.
- The company operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees.
- Failure or disruption of the company information and technology ("IT") and/ or enterprise resources planning systems may adversely affect its business, financial condition, results of operations and future prospects.
- The company may be held liable for the non-payment of wages to the contract labour its engage in the company business.
- The company lenders have charge over its movable and immovable properties in respect of finance availed by it.
- The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
- The company is subject to restrictive covenants under its financing agreements that could limit the company flexibility in managing its business or to use cash or other assets. Any defaults could lead to acceleration of the company repayment obligations, cross defaults under other financing agreements, termination of one or more of its financing agreements or force it to sell the company assets, which may adversely affect its cash flows, business, results of operations and financial condition.
- The company management will have broad discretion in how its apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- Some of the company Group Companies have incurred losses in the previous Fiscals.
- The company Promoters and certain members of its Promoter Group have issued personal guarantees in relation to debt facilities availed by it, which if revoked may require alternative guarantees, repayment of amounts due or termination of the facilities.
- The company future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- The company ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company financing arrangements.
- The company Promoters and some of its Directors are interested in the Company, in addition to regular remuneration or benefits and reimbursement of expenses.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- The average cost of acquisition of Equity Shares by the company Promoters could be lower than the floor price.
- Bismi Fisheries Private Limited, the Group Company is engaged in activities which is similar to its business. This may be a potential source of conflict of interest for it and which may have an adverse effect on the company business, financial condition and results of operations.
- The company Promoters have interest in entities, which are in businesses similar to its and this may result in conflict of interest with it.
- Information relating to the installed manufacturing capacity of the Manufacturing Facility included in this Draft Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.
- The company ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company access to capital and thereby adversely affect its business and results of operations.
- The requirements of being a public listed company may strain its resources and impose additional requirements.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- The company funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
Mukka Proteins Ltd Peer Comparison
Understand the company’s industry standing
Mukka Proteins Ltd
Avanti Feeds Ltd
Godrej Agrovet Ltd
Face Value
1
1
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
---
---
---
EPS-Basis
2
20.45
15.71
EPS-Diluted
2
20.45
15.71
NAV Per Share
5.86
174.45
142.78
P/E-Basic EPS
14
25
33.23
P/E-Diluted EPS
---
---
---
RONW(%)
34.19
13.14
10.77
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Mukka Proteins Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 29 Feb 2024 & closes on 04 Mar 2024.
Mukka Proteins Limited was originally incorporated as 'Mukka Sea Food Industries', a Partnership firm in Karnataka on March 13, 2003. Subsequently, the Partnership Firm was thereafter converted to Private Company as 'Mukka Sea Food Industries Private Limited' on November 04, 2010. The Company subsequently got converted into Public Limited Company dated December 02, 2019 in the name of 'Mukka Sea Food Industries Limited' and the name of the Company changed to 'Mukka Proteins Limited' vide a fresh certificate of incorporation issued by ROC-Bangalore, dated August 06, 2021.
The Company manufacture fish meal, fish oil and fish soluble paste, an essential ingredient in the manufacturing of aqua feed (for
fish and shrimp), poultry feed (for broiler and layer) and pet food (dog and cat food). Further, fish oil also finds its application in pharmaceutical products (additionally, the EPA-DHA extraction is used as an ingredient in nutraceuticals), soap manufacturing, leather tanneries & paint industries.
Led by the Founder Promoter, Mr. Kalandan Mohammed Haris, Mukka Group is one of the pioneers in the Fishmeal Industry having set up one of India's first steam sterilised fishmeal plants. They produce Steam Dried Fish Meal, Fish Oil and Fish Soluble Paste from their modern and fully mechanized plant situated in Karnataka and Gujarat, which is geared up to deliver Fish Meal, Fish Oil and Fish Soluble Paste to every corner of the globe. Recently, the Company diversified products by developing alternative proteins such as Black Soldier Fly (BSF) Insect Meal and Insect Oil in the animal food industry.
The Company business is extended to manufacture of High-Quality Fish Meal and Omega-3 Fish Oil which is used as a raw material in aquafeed, poultry feed, pet feed, animal feed, EPA-DHA extraction (use in nutraceuticals - nutrients plus pharmaceuticals), soap manufacture, leather tanneries & Paint industries across globally.
In 2014, the Company commenced International operations in the Middle East.
In 2018, it set up a Manufacturing Facility in Gujarat.
The Company has raised money from public through IPO aggregating upto Rs 224 Crore by issuing 8,00,00,000 Equity Shares through Fresh Issue in March, 2024.
Mukka Proteins Ltd IPO will close on 04 Mar 2024.
- Its position as a leading manufacturer and exporter of Fish Protein products.
- Established customer base and strong relationships.
- Strategically located processing facilities.
- Entry Barriers.
- Strong and consistent financial performance.
- Focus on Quality, Environment, Health and Safety (QEHS).
- Experienced Promoter Directors with extensive domain knowledge.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Kalandan Mohammed Haris | 90686800 | 41.22 | 90686800 | 30.23 |
| 2 | Kalandan Mohammad Arif | 48400400 | 22 | 48400400 | 16.13 |
| 3 | Kalandan Mohammed Althaf | 48400400 | 22 | 48400400 | 16.13 |
- The Company, some of its Subsidiaries, Promoters, Directors and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on the company business, results of operations and financial condition.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect the company operations.
- Introduction of stricter norms regulating the company operation in domestic and overseas market could result in loss due to its inability to meet customer requirement and production schedules, which could materially affect the company business, results of operations and financial condition.
- The company have certain contingent liabilities as stated in the Restated Consolidated Financial Statement, and in the event, they materialize it could adversely affect its financial condition.
- The company has experienced negative cash flows from operating activities and may do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
- The Company is party to a legal proceeding concerning an alleged violation of environmental norms by the Company. An adverse outcome of the proceeding could have an impact on the Company's operations at Mukka Manufacturing Facility I.
- In past, one of the company Promoter Director, Kalandan Mohammed Haris has been subject to search and seizure of property by Directorate of Enforcement in relation to alleged violation of Foreign Exchange Management Act, 1999 against which the company Promoter has filed a Writ Petition against (i) Union of India, (ii) Commissioner of Customs and (iii) Directorate of Enforcement before the Hon'ble High Court of Karnataka, at Bengaluru. An adverse outcome of the proceeding could have an impact on the Company's business, results of operations and financial condition.
- A significant majority of the company revenues from operations are derived from a limited number of customers.
- A majority of the company supplies for the company operations are obtained from a limited number of suppliers.
- Under-utilisation of the company manufacturing capacities and an inability to effectively utilise its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- The company operates in an environmentally sensitive industry and are subject to disruptions due to unpredictable or unseasonal weather.
- There may have been certain instances of non-compliances and alleged non-compliances with respect to certain regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties.
- Man-made factors affecting the pelagic fish populations could adversely affect the company business, financial condition and results of operations.
- The company production and operations are subject to seasonal fluctuations.
- The products that the company manufacture or process is subject to risks such as contamination, adulteration and product tampering during their production, transportation or storage and any failure to provide the specified quality of fish meal, fish oil and fish soluble paste could have a negative impact on the company business.
- The Company does not have any formal long-term arrangements with the suppliers of its key raw material. Any significant variation in the supply may adversely affect the operations and profitability of the Company.
- The company has recently ventured into insect protein business and its may be unable to execute the company strategy to expand the business or find suitable market for insect proteins, which could have a material adverse effect on its business, financial condition and results of operations.
- In respect of the land on which Mukka Manufacturing Facility II is located, the company Licensor's title to the land may be defective on account of failure to obtain necessary written consent of Governor of Karnataka represented by the Director of Ports and Inland Water Transport in Karnataka ("Port Authority") in relation to transfer of licence of the land to Haris Marine Products (now Haris Marine Products Private Limited) or the written consent if at all obtained, is not traceable and the document executed with Marine Enterprises by Haris Marine Products is not duly registered or adequately stamped.
- The company procure raw material from its Associates and the partnership firm, wherein though the Company has made substantial capital contribution, the Company do not control such entities and therefore its interests may not align with the interests of the other stakeholders of such entities.
- The gross margin for the company products could decline and its cannot assure you that the company can maintain its gross margin at the same level in the future.
- The company is subject to the legal and regulatory framework of the international markets where its export the company products and may not always be able to comply with applicable rules and regulations or may be adversely affected in the event of introduction of international trade barriers.
- An inability to comply with applicable health and hygiene standards or quality standards in the company operations and ensure quality of its products may materially and adversely the company business and reputation.
- Intellectual property rights are important to the company business. Failure to get approval for intellectual property rights may adversely affect its business. The company may be unable to protect them from being infringed by others, including its current and / or future competitors/employees which may adversely affect the company business value, financial condition and results of operations.
- The company issusceptible to exchange rate fluctuations.
- The company is dependent on its Promoters Directors for the functioning of the company business and the loss of or its inability to attract or retain such persons could adversely affect the company business, results of operations and financial condition.
- Any inability on the company part to collect amounts owed to it or pay amounts owed by it could result in the reduction of its profits.
- The company senior management team and other key managerial personnel in its business units are critical to the company continued success and its may be unable to attract and retain such personnel in the future.
- The company is currently entitled to certain Export incentives. Any decrease in or discontinuation of such Export incentives or export promotion schemes may adversely affect its results of operations and financial performance.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition and results of operations.
- An inability to effectively manage the company growth and expansion may have a material adverse effect on its business prospects and future financial performance.
- The Company is dependent on third parties for transportation and export of its finished products and any disruption in their operations or a decrease in the quality of their services could have an adverse impact on the company business, financial condition, cash flows and results of operations.
- The company may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.
- Any significant interruption in continuing operations of the company manufacturing or storage facilities could have a material adverse effect on its business, results of operations, cash flows and financial condition.
- In addition to the Manufacturing Facilities, the company enter into arrangement with third-party manufacturers including on job work basis and therefore, the company is subject to risks associated with the third-party manufacturing processes.
- The company business is dependent on the delivery of adequate and uninterrupted supply of electrical power and water at a reasonable cost and any shortage, disruption or non-availability of power and water may adversely affect its entire processing requirements and have an adverse impact on the company business, results of operations and financial condition.
- Activities involving the company manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at any of its facilities may adversely affect the company production schedules, costs, revenue and ability to meet customer demand.
- The company pursuit of inorganic growth opportunities may not be successful and could result in increased costs.
- The company relies on contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on the company results of operations and financial condition.
- Changes in technology may affect the company business by making its processing facilities or equipment less competitive or obsolete.
- Failure to procure and/ or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.
- The company may be unable to attract and retain employees with the requisite skills, expertise and experience, which would adversely affect the company operations, business growth and financial results.
- The Company and its Subsidiaries, during the during the nine months period ended December 31, 2022 Fiscal 2022, 2021 and 2020 had entered into various transactions with its Promoters, some of the members of the Promoter Group and some of the Directors. The Company and its Subsidiaries have in the past entered into Related Party Transactions and may continue to do so in the future also, which may adversely affect the company competitive edge and better bargaining power had these transactions been with non-related parties resulting in relatively more favourable terms and conditions and better margins.
- The company majorly supply its products to aqua feed, poultry feed and pet food industry and outbreaks of any livestock diseases in general, and shrimp and poultry disease in particular, can significantly restrict the company ability to conduct its operations.
- Certain sections of this Draft Red Herring Prospectus disclose information from (i) the CRISIL Report which have been commissioned and paid for by it exclusively in connection with the Issue; and (ii) RaboResearch Report which is a publicly available report and BRLM has obtained consent of RaboResearch for use of the report, by email dated March 10, 2023 and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- The company do not own some of the business premises where its Manufacturing Facilities, Blending Facilities and Storage Facilities are located.
- The company operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees.
- Failure or disruption of the company information and technology ("IT") and/ or enterprise resources planning systems may adversely affect its business, financial condition, results of operations and future prospects.
- The company may be held liable for the non-payment of wages to the contract labour its engage in the company business.
- The company lenders have charge over its movable and immovable properties in respect of finance availed by it.
- The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
- The company is subject to restrictive covenants under its financing agreements that could limit the company flexibility in managing its business or to use cash or other assets. Any defaults could lead to acceleration of the company repayment obligations, cross defaults under other financing agreements, termination of one or more of its financing agreements or force it to sell the company assets, which may adversely affect its cash flows, business, results of operations and financial condition.
- The company management will have broad discretion in how its apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- Some of the company Group Companies have incurred losses in the previous Fiscals.
- The company Promoters and certain members of its Promoter Group have issued personal guarantees in relation to debt facilities availed by it, which if revoked may require alternative guarantees, repayment of amounts due or termination of the facilities.
- The company future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- The company ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company financing arrangements.
- The company Promoters and some of its Directors are interested in the Company, in addition to regular remuneration or benefits and reimbursement of expenses.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- The average cost of acquisition of Equity Shares by the company Promoters could be lower than the floor price.
- Bismi Fisheries Private Limited, the Group Company is engaged in activities which is similar to its business. This may be a potential source of conflict of interest for it and which may have an adverse effect on the company business, financial condition and results of operations.
- The company Promoters have interest in entities, which are in businesses similar to its and this may result in conflict of interest with it.
- Information relating to the installed manufacturing capacity of the Manufacturing Facility included in this Draft Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.
- The company ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company access to capital and thereby adversely affect its business and results of operations.
- The requirements of being a public listed company may strain its resources and impose additional requirements.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- The company funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
The Issue type of Mukka Proteins Ltd is Book Building.
The minimum application for shares of Mukka Proteins Ltd is 535.
The total shares issue of Mukka Proteins Ltd is 80000000.
Initial public offering of up to 80,000,000^ equity shares of face value of Re. 1/- each ("Equity Shares") of Mukka Proteins Limited ("The Company" or the "Issuer") for cash at a price of Rs. 28 per equity share (including a securities premium of Rs. 27 per equity share) ("Issue Price") aggregating up to Rs. 224.00 crores ("The Issue")^. The issue will constitute 26.67% of its post-issue paid-up equity share capital.
^Subject to finalisation of the basis of allotment