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Mukka Proteins Ltd’s Strategic Investment in Ento Proteins Pvt Ltd

24 June 20243 mins read by Angel One
Mukka Proteins Ltd increases investment in its Associate Company, Ento Proteins Private Limited, reshaping ownership to 74%.
Mukka Proteins Ltd’s Strategic Investment in Ento Proteins Pvt Ltd
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Mukka Proteins Limited (MPL) informed in a stock exchange filing that the company, being one of the shareholders of Ento Proteins Private Limited, Associate Company, executed an amended Shareholders Agreement with Ento Proteins Private Limited and Holocene Ecosolutions Private Limited on June 20, 2024.

MPL, an associate company of EPPL, announced its decision to enhance its investment by ₹10,00,00,000 (Ten Crore Indian Rupees) in EPPL, leading to the amendment of their existing agreement dated September 13, 2021.

Currently, MPL and HEPL each hold a 50% equity stake in EPPL. Under the amended agreement, MPL and HEPL will now hold 74% and 26% equity in EPPL, respectively. MPL’s increased investment includes a capital infusion of ₹7,00,00,000 (Seven Crore Indian Rupees) and an optionally convertible loan of ₹3,00,00,000 (Three Crore Indian Rupees) to EPPL. The terms specify that conversion of the optionally convertible loan will not reduce HEPL’s equity below 26%, unless mutually agreed otherwise in writing.

Key provisions of the amended agreement stipulate that MPL will nominate the Chairman of the board of EPPL. Additionally, HEPL has been restricted from collaborating with Avanti Feeds Limited and its group entities for seven years in supplying Black Soldier Fly (BSF) eggs and larvae to entities engaged in Municipal Solid Waste (MSW) management. Moreover, HEPL must actively transfer its egg production, breeding technology, expertise, and documented Research and Development (R&D) to MPL.

Regarding share issuance, EPPL will allot 1,847 equity shares to MPL at a price of ₹37,917 per share, ensuring parity with existing equity shares.

This strategic agreement underscores MPL’s commitment to bolstering its partnership with EPPL and expanding its influence in the sustainable agriculture sector. By increasing its equity stake and providing substantial financial support, MPL aims to accelerate EPPL’s growth trajectory and capitalise on emerging opportunities in the BSF industry and MSW management.

About Mukka Proteins Limited

Mukka Proteins Limited is an animal protein company that is mainly involved in the production of fish oil, fish meal and fish-soluble paste. They also develop alternative proteins such as Black Soldier Fly (BSF) Insect meal in the animal food segment.

On June 21, 2024, the share price of Mukka Proteins opened at ₹34.20, touching the day’s high at ₹34.29, as of 10:01 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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