Mukka Proteins plans 46% SESPL stake for Rs 2.13 crore

Mukka Proteins Limited plans to invest Rs 2.13 crore in cash for a 46% holding in Swaccha Eco Solutions Private Limited (SESPL), a waste-management company that reported a Rs 75.05051 lakh loss and negative net worth of Rs 2.1022476 crore in FY 2025-26. The proposed transaction is scheduled for completion by March 31, 2027.

What is Mukka Proteins buying and for how much?

Mukka Proteins proposes to buy 85,200 equity shares of SESPL for Rs 2.13 crore in cash, at Rs 250 per share. The shares have a face value of Rs 10 each, and the transaction would leave Mukka Proteins with a 46% post-acquisition shareholding in SESPL. The filing describes the share purchase as proposed rather than completed.

The consideration of Rs 2.13 crore is payable in cash, while SESPL has paid-up capital of Rs 5 lakh and authorised capital of Rs 10 lakh. The filing does not disclose a valuation method, the identity of the selling shareholder, a shareholders' agreement, board representation or operating rights associated with the proposed 46% holding.

When will Mukka Proteins complete the SESPL investment?

Mukka Proteins has indicated March 31, 2027 as the completion date for the proposed SESPL investment. The disclosure says no governmental or regulatory approvals are applicable, making the stated March 2027 date the only transaction-completion milestone identified in the announcement.

The Rs 2.13 crore transaction is not a related-party transaction, according to the filing. Mukka Proteins has not disclosed conditions precedent, funding milestones or a staged payment schedule before the March 31, 2027 completion date, beyond identifying cash as the form of consideration.

What are SESPL's financial results and operating history?

SESPL reported turnover of Rs 1.7761136 crore, a profit after tax loss of Rs 75.05051 lakh and negative net worth of Rs 2.1022476 crore for FY 2025-26. The disclosure provides no explanation for the loss and does not set out SESPL's assets, borrowings, customers or outstanding obligations.

SESPL's turnover rose from Rs 1.4445028 crore in the year ended March 2024 to Rs 2.776481 crore in the year ended March 2025, before falling to Rs 1.7761136 crore in the year ended March 2026. The latest annual turnover was therefore Rs 1.0003674 crore below the March 2025 figure. SESPL was incorporated on September 12, 2017 and has its stated presence in India.

SESPL's stated line of business is the collection, treatment and disposal of all types of waste. The filing does not split its Rs 1.7761136 crore FY 2025-26 turnover by waste category, customer, facility, geography or treatment activity, and it provides no turnover figure after March 2026.

Why is Mukka Proteins investing in a waste-management company?

Mukka Proteins said the proposed Rs 2.13 crore investment forms part of its strategic plans to expand its waste-management segment. SESPL's business of collecting, treating and disposing of all types of waste is the disclosed connection between the target and that expansion plan. The filing does not quantify expected revenue, waste volumes, cost savings or profitability from the investment.

Mukka Proteins' standalone financial-results note for the half year ended September 30, 2026 identifies Fish & Insects Protein as its single operating segment for reporting purposes. That reported segment position means waste management was not separately reported in the disclosed half-year financial statements. The announcement does not say whether or when Mukka Proteins will report waste management as a separate operating segment.

How does the SESPL consideration compare with Mukka Proteins' finances?

Mukka Proteins' proposed Rs 2.13 crore cash consideration compares with Rs 1.853 crore of cash and cash equivalents in its standalone balance sheet at September 30, 2026. The same balance sheet reported investments of Rs 81.964 crore and total current assets of Rs 1,334.404 crore. These figures are a balance-sheet snapshot and do not identify the specific funding source for the SESPL transaction.

For the half year ended September 30, 2026, Mukka Proteins reported net cash used in operating activities of Rs 30.766 crore, compared with Rs 109.465 crore used in the corresponding 2025 half year. Net cash from financing activities was Rs 49.707 crore, down from Rs 133.784 crore a year earlier, while cash and cash equivalents fell by Rs 8.8 lakh during the 2026 half year to Rs 1.853 crore. The filing does not link these cash-flow items to the proposed SESPL investment.

Conclusion

Mukka Proteins' proposed Rs 2.13 crore cash purchase would give it a 46% holding in SESPL and provide the disclosed route for its waste-management expansion. SESPL brings a waste collection, treatment and disposal business with FY 2025-26 turnover of Rs 1.7761136 crore, but it also reported a Rs 75.05051 lakh loss and negative net worth of Rs 2.1022476 crore for that year.

The next disclosed event to watch is the proposed completion by March 31, 2027. Before then, the filing leaves unresolved the funding source, the basis for the Rs 250 per-share price, the rights attached to the 46% holding and any operating or financial targets Mukka Proteins may set for SESPL after completion.