Mukka Proteins Limited, India’s largest producer of fish meal and insect meal, and a key player in the animal protein industry, has secured Board approval for a preferential issue valued at Rs 98 crore. This strategic initiative will support the company’s domestic and international acquisition efforts, bolstering its position in the global market. A significant portion of the funding will come from the promoter and promoter group, highlighting their commitment to Mukka’s long-term growth strategy.

The preferential issue will involve the issuance of up to 1.96 crore equity shares at Rs 50 per share, totaling Rs 98 crore. Each share includes a premium of Rs 49 on the face value of Rs 1. The fresh capital will be used to enhance production capabilities and meet the growing demand for sustainable, high-quality protein solutions—particularly fishmeal and insect meal—across global markets.

In a show of strong support, Mukka’s promoters have committed to infusing Rs 60 crore through this preferential allotment. The funds will strengthen the company’s financial health, reduce debt, and enable key operational improvements to drive efficiency and profitability.

A pioneer in sustainability, Mukka Proteins has successfully commercialized insect protein, revolutionizing the aquaculture and animal feed industry. Its waste-to-food initiatives, including collaborations with Mangaluru’s municipality for waste management, align with global environmental practices. These efforts exemplify the circular economy model, converting municipal waste into valuable protein and oil products.

Mukka’s focus on ecological preservation is reflected in its portfolio of sustainable products, such as fishmeal, fish oil, and insect protein. Holding 25-30% of the market share in India’s fishmeal and fish oil sector, the company aims to leverage the new capital to expand operations and penetrate new markets, further strengthening its global footprint.

The preferential issue is subject to statutory and regulatory approvals, including shareholder consent at the upcoming Extra-Ordinary General Meeting (EGM) on November 16, 2024.

Commenting on the development, Managing Director and CEO Harris said, “This preferential issue marks a significant milestone for Mukka Proteins. It empowers us to scale operations, diversify our product offerings, and advance our mission of sustainable growth. With this capital, we remain committed to responsible business practices that balance innovation, environmental stewardship, and operational excellence.”

Mukka Proteins Limited is well-positioned to seize new opportunities in the animal protein sector, reaffirming its legacy of innovation, sustainability, and leadership.