Thursday, February 29 was the start date of Mukka Proteins' initial public offering (IPO), which ends on Monday, March 4. The IPO for Mukka Proteins has received a resounding reaction from investors on both days.
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It has set aside a minimum of 15% of the shares for non-institutional investors (NIIs), a maximum of 50% of the shares for qualified institutional buyers (QIBs), and a minimum of 35% of the offer for retail investors.
It has set aside a minimum of 15% of the shares for non-institutional investors (NIIs), a maximum of 50% of the shares for qualified institutional buyers (QIBs), and a minimum of 35% of the offer for retail investors.
The ₹224 crore Mukka Proteins IPO consists of new issuance of 8,00,00,000 equity shares with a face value of Re 1. There isn't a component that is for sale.
Additionally Read: Mukka Proteins IPO Day 2: Verify GMP, the status of the subscription, review, important dates, and more. Is it wise for you to subscribe?
According to the red herring prospectus (RHP), the company plans to fund its working capital needs as well as general corporate objectives and investment in Ento Proteins Private Limited, an associate. The net proceeds from the issuance will be used for these reasons.
Additionally Read: Mukka Proteins IPO Day 2: Verify GMP, the status of the subscription, review, important dates, and more. Is it wise for you to subscribe?
According to the red herring prospectus (RHP), the company plans to fund its working capital needs as well as general corporate objectives and investment in Ento Proteins Private Limited, an associate. The net proceeds from the issuance will be used for these reasons.
Here are some of the key risks listed by the company:
- The company plans to utilize a portion of the offering's net proceeds to cover its working capital requirements, which are estimated based on certain factors and have not been assessed by a bank or other financial institution.
- The corporation must get certain licenses and approvals, as well as follow rules and regulations, to conduct ordinary commercial activities. If licenses and permissions are not secured, upheld, and renewed, or if rules and regulations are broken, it could negatively affect operations.
Also Read: ₹224-crore Mukka Proteins IPO opens: GMP, issue information, and 10 important things to know before investing
- To operate, the company must get the required licenses and permits for the Mukka Manufacturing Facility II as well as abide by a variety of laws and regulations. Any failure to abide by these guidelines or to apply for, get, and maintain the necessary licenses and permissions could have a detrimental effect on the operations.
- The company's ability to obtain finance at competitive rates is impacted by its credit ratings. A lack of liquidity or a low credit rating could make it more difficult for the business to get money, which would be detrimental to operations.
- The majority of the company's profits come from selling fishmeal in China, Vietnam, India, and Japan.
- The company's financial situation, operational performance, unfavorable events or changes in consumer behavior, product demand, or legislative changes in India or other comparable countries may have a major effect.
- The previous fiscal years saw losses for a few Group Companies.
- The company's operating cash flows have been negative and may remain so in the future. This could have a detrimental effect on the business's operations, prospects, cash flows, and financial standing.