SOURCE : NEW18 NEWS
Last Updated:December 23, 2024, 17:49 IST
Unlisted shares of Mamata Machinery are trading at Rs 503 in the grey market, reflecting a premium of 107% over the upper price band of Rs 243, indicating a blockbuster listing gain for investors on December 27.
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Mamata Machinery IPO: The initial public offering of Mamata Machinery Ltd, a Gujarat-based manufacturer of packaging machinery, has been closed on Monday, December 23. Till 5:00 pm on the final day of bidding, the Rs 179.39-crore IPO received 194.95 times subscription garnering bids for 1,00,94,81,375 shares as against the 51,78,227 shares on offer.
So far, the retail category has received a 138.08 times subscription, while the non-institutional category (NII) got a 274.38 times subscription. The qualified institutional buyers (QIB) category received a 235.88 times subscription.
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Mamata Machinery IPO: Price Band & Lot Size
The price band of the IPO has been fixed in the range of Rs 230 to Rs 243 per share.
The minimum lot size for an application is 61. The minimum amount of investment required by retail investors is Rs 14,823. The minimum lot size investment for small NII is 14 lots (854 shares), amounting to Rs 2,07,522, and for big NII, it is 68 lots (4,148 shares), amounting to Rs 10,07,964.
Mamata Machinery IPO: Key Dates
Closing Date: December 23 (Monday)
Allotment Finalisation: December 24
Listing on BSE and NSE: December 27 (Friday)
Mamata Machinery IPO GMP Today
As per market analysts, the unlisted shares of Mamata Machinery are trading at Rs 503 in the grey market, reflecting a premium of Rs 260 (107%) over the upper price band of Rs 243. This indicates a blockbuster listing gain for investors on December 27.
Mamata Machinery IPO: Analysts’ Recommendations
Rajan Shinde, research analyst at Mehta Equities, said, “Mamata Machinery Ltd has a strong global presence in markets such as the US, Europe, Latin America and the Middle East. The company caters to high-demand sectors including FMCG, food, pharmaceuticals and e-commerce. Its focus on innovation and sustainable packaging machinery positions it to benefit from the rising demand for recyclable and biodegradable materials, aligning with global sustainability goals.”
On financials, Mamata Machinery has shown stable growth, with revenue increasing by 17.8 per cent in FY24 and its net profit surging 60.5 per cent, reflecting strong operational performance despite muted growth in FY 2023, he added.
“As industries increasingly shift toward automation and flexible packaging solutions, Mamata’s strong customer relationships, extensive global distribution network and emphasis on after-sales services enable repeat business and foster brand trust, we believe the company is well-positioned to capitalise on this growth. Hence, looking at all attributes, we recommend investors to ‘subscribe’ the Mamata Machinery IPO for a long-term perspective,” Shinde said.
Brokerage firm Choice in its IPO note also recommended a ‘subscribe’ rating for the IPO.
It said, “At the upper end of its price range, MML is demanding a P/E multiple of 16.6x, based on its FY24 EPS of Rs. 14.7, and a EV/Sales multiple of 2.6x, this valuation seems to be at a discount compared to its peers. Looking ahead, we believe MML has strong long-term growth potential by expanding its presence in regions such as Europe, Africa, and the Middle East, which will further increase its customer base. Thus, we recommend a ‘subscribe’ rating for this issue.”
Bajaj Broking also granted a ‘subscribe for long term’ rating to the IPO.
It said, “It is a global player and has manufacturing unit in US to supply neighbouring countries. It marked steady growth in its top and bottom lines for FY22-FY24. While based on Q1-FY25 the issue appears costly, but historically the first half is a lean period for them. They always have better second half. The management is confident of maintaining the growth trends posted. Based on FY24 earnings, the issue appears reasonably priced. Investors may park funds for medium to long term.”
Mamata Machinery IPO: More Details
The initial share sale is an offer-for-sale (OFS) of 73.82 lakh equity shares by the promoters, amounting to Rs 179.38 crore at the upper price band.
Promoters participating in the OFS include Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, Mamata Management Services LLP.
Since the IPO is an OFS, the company will not receive proceeds from the issue. Instead, the funds will go directly to the selling shareholders.
Objectives of the IPO
The company aims to leverage the equity share listing to:
Enhance visibility and brand recognition
Provide liquidity to existing shareholders
Establish a public market for equity shares
At the upper price band, the company’s market capitalization is estimated at approximately Rs 600 crore.
Anchor Investors and Pre-IPO Details
Mamata Machinery raised Rs 53.56 crore from anchor investors prior to the IPO by allotting 22.04 lakh shares at Rs 243 apiece.
Beeline Capital Advisors is the sole book-running lead manager for the issue. The equity shares will be listed on the BSE and NSE on December 27.
About Mamata Machinery
The company provides end-to-end manufacturing solutions for the packaging industry, offering products under the brands ‘Vega’ and ‘Win.’ It serves the flexible packaging market across the entire value chain.
