Mukka Proteins Limited Announces Rs 98 Crore Preferential Issue for Acquisition and Expansion

 

Promoters of Mukka Proteins Infusing Nearly Rs 60 Crores in Major Funding Boost

 

Mangaluru, October 22, 2024: Mukka Proteins Limited, India’s largest fish meal and insect meal producer and a leader in the animal protein industry, has announced the approval of a preferential issue worth Rs 98 crore by its Board of Directors. This strategic move will help Mukka Proteins in its ongoing domestic and international acquisition and expansion efforts, reinforcing its position in the global market. A significant portion of the funding will come from the promoter and promoter group, underlining their commitment to the company’s robust growth strategy.

The preferential issue will comprise up to 1.96 crore equity shares at Rs50 per share, aggregating to Rs98 crore. This price includes a premium of Rs49 per share on the face value of Rs1. Mukka Proteins will use the raised capital to enhance production capabilities and meet the growing global demand for sustainable and high-quality protein solutions, particularly in the fishmeal and insect meal sectors.

In a clear show of confidence, Mukka Proteins’ promoters have committed to a capital infusion of INR 60 crore through a preferential allotment of equity shares. This significant financial backing will be used to strengthen the company’s financial position, reduce debt, and fund key operational improvements.

Mukka Proteins has consistently embraced sustainability, having commercialized insect protein as a significant innovation for the aquaculture and animal feed industry. The company’s waste-to-food initiatives have contributed to environmental sustainability, particularly in collaboration with the Mangaluru municipality for waste management. These efforts not only align with global environmental best practices but also enhance circular economy processes, focusing on converting municipal waste into valuable protein and oil products.

Mukka Proteins is known for its strong commitment to ecological preservation, evident through the development of sustainable products such as fishmeal, fish oil, and insect protein. As a key player in the aquaculture and nutraceutical markets, Mukka contributes 25-30% of the market share in India’s fishmeal and fish oil industry. The company plans to expand its operations further, capitalizing on this capital infusion to enter new markets and enhance its global footprint.

This issuance is subject to necessary statutory and regulatory approvals, including shareholder approval at the upcoming Extra-Ordinary General Meeting (EGM) on November 16, 2024.

Managing Director and CEO Harris commented, “This preferential issue is a major milestone for Mukka Proteins as we continue to strengthen our market position. Our growth plans remain firmly rooted in sustainability, and this capital will enable us to scale up production, diversify our product offerings, and reinforce our commitment to responsible and eco-friendly business practices.”

Mukka Proteins Limited is poised to capture new opportunities in the animal protein sector, reinforcing its legacy of innovation, sustainability, and operational excellence.