New Delhi, Nov 7 (PTI) Mukka Proteins, which manufactures fish meal, fish oil, and fish soluble paste, has received capital markets regulator Sebi's go-ahead to raise funds through an initial public offering (IPO).

The IPO is an entirely fresh issue of up to 8 crore equity shares, according to the draft red herring prospectus (DRHP).

The company, which had refiled its draft IPO papers with the regulator in June, obtained an observation letter from it on October 30, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

In Sebi's parlance, obtaining an observation letter means the regulator's nod to float the public issue.

Going by the draft papers, the company proposes to utilize up to Rs 120 crore towards working capital requirements, up to Rs 10 crore for investment in its associate, Ento Proteins Pvt Ltd, for funding its working capital requirements besides a portion will be used for general corporate purposes.

According to market sources, the IPO size could be anywhere between Rs 175 crore and Rs 200 crore.

The Mangaluru-based company manufactures 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).

It has six manufacturing facilities, of which two are held through its foreign subsidiary, Ocean Aquatic Proteins LLC, which is based in Oman and four are located in India. Additionally, the company runs five storage facilities and three blending facilities in India.

Mukka Proteins' revenue from operations rose 27.60 per cent to Rs 770.50 crore in fiscal 2022, from Rs 603.83 crore in fiscal 2021 and profit after tax (PAT) surged 134.50 per cent to Rs 25.82 crore in the period under review, from Rs 11.01 crore in the preceding fiscal.

Fedex Securities is the sole book-running lead manager. The equity shares are proposed to be listed on the BSE and NSE.

Earlier, the firm had filed its draft papers with the regulator in March 2022. However, the company shelved its IPO plans at that time and withdrew its draft papers. PTI SP DRR