Mukka Proteins Secures 51% Stake in FABBCO, Stock Rises Over 4%

Mumbai, September 2, 2025 –Mukka Proteins Limited (NSE: MUKKA; BSE: 544135) announced today that it has signed a Shareholders Agreement (SHA) and a Share Purchase Agreement (SPA) with FABBCO Bio Cycle and Bio Protein Technology Pvt. Ltd., to purchase a 51% majority stake in the company. The deal will help consolidate the company’s position in the alternative feed sector and complement its existing insect protein venture, Ento Proteins. The company will benefit from FABBCO’s expertise in insect-based protein production.

The development aligns with the company’s commitment to expand its feed portfolio to meet the increasing global demand for sustainable aquafeed and livestock nutrition. On Tuesday, the stock opened 4.62% higher, at ₹28.08, up from its previous close of ₹26.84.

Transaction Overview Details

On September 2, 2025, contracts were closed for the purchase and subscription of equity shares in FABBCO, securing a 51% ownership stake in the company. The deal consisted of the subscription of 2,436 equity shares (valued at a face value of ₹1,000 per share) with a premium of ₹11,250 per share plus the purchase of 2,422 equity shares at the same valuation from shareholders already in possession of equity shares. FABBCO would apply the payments received against preference share redemptions and debt repayments.

As part of the deal, the reconstitution of the board with equal representation, rights on reserved matters, and subscription rights to shares were agreed upon. In addition, FABBCO would provide technical support for Mukka’s Black Soldier Fly (BSF) project in Bangalore, offer BSF eggs to Mukka for its facilities in Mangalore and Bangalore, and pay ₹0.50 per kg of waste processed as an operational support fee.

Market Reaction

At 12:30 am IST, shares of Mukka Proteins rose on the announcement. Shares traded 1.07 (3.99%) higher at ₹27.91 at the last close, compared to ₹26.84 at the previous close. During the session, shares traded as high as ₹28.59 and as low as ₹26.92, with a volume-weighted average price of ₹28.00. The company’s market capitalization was ₹842.40 crore. In the past 52 weeks, the stock has traded a low of ₹24.75 and a high of ₹47.39.

Mukka Proteins Limited was listed in March 2024 and operates in the animal feed business by supplying steam-dried fish meal, fish oil, and fish soluble paste to the animal feed market. Mukka Proteins Limited is part of the Nifty IPO index and has a total market cap greater than ₹840 crore.

REF: https://nsearchives.nseindia.com/corporate/MUKKA_02092025101446_Intimation_of_SHA_SPA_FABBCO.pdf

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