Mamata Machinery Limited’s Initial Public Offering (IPO) is the latest buzz in the investment world. Mamata Machinery IPO has garnered immense interest from investors, with the issue witnessing a subscription of 76.74 times on its final day. Here’s a detailed update on the subscription status, grey market premium (GMP), and investor sentiment.
About The Mamata Machinery Limited
Mamata Machinery Limited, established in 1979, is a leading manufacturer and exporter of machinery for the packaging industry, specializing in plastic bags, pouches, and extrusion equipment.
The company caters to the FMCG, Food, and Beverage industries, serving clients such as Balaji Wafers Private Limited, Dass Polymers Private Limited, Jflexy Packaging Private Limited, Euphoria Packaging Private Limited, Sunrise Packaging, Om Flex India, Chitale Foods, V3 Polyplast Private Limited, Dhalumal Packaging Industries LLC, Laxmi Snacks Private Limited, Ganges Jute Private Limited
Western India Cashew Company Private Limited, N. N. Print & Pack Private Limited, Gits Food Products Private Limited, and Emirates National Factory for Plastic Ind LLC. As of May 31, 2024, Mamata Machinery Limited has exported machines to over 75 countries, with international offices in Bradenton, Florida, and Montgomery, Illinois.
Mamata Machinery IPO Overview
Mamata Machinery IPO is a book-built issue with a total size of ₹179.39 crores, entirely structured as an offer for sale of 0.74 crore shares. The IPO began accepting bids on December 19, 2024 and concluded on December 23, 2024.
- Price Band: ₹230 – ₹243 per share
- Minimum Lot Size: 61 shares
- Retail Investment Requirement: ₹14,823 (minimum)
- Listing Date: Tentatively on December 27, 2024, on both BSE and NSE
The IPO also reserves 35,000 employee shares, offered at a ₹12 discount per share.
Key Dates to Remember
| Event | Date |
|---|---|
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Allotment Finalization | December 24, 2024 |
| Refund Initiation | December 26, 2024 |
| Shares Credited to Demat | December 26, 2024 |
| Listing Date | December 27, 2024 |
Reservation Details
The issue is segmented to cater to various investor categories:
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Retail Investors (RII) | 25,71,569 | 34.83% |
| Qualified Institutional Buyers (QIB) | 14,69,557 | 19.91% |
| Non-Institutional Investors (NII) | 11,02,101 | 14.93% |
| Anchor Investors | 22,04,202 | 29.86% |
| Employees | 35,000 | 0.47% |
Mamata Machinery IPO Anchor Investors
Mamata Machinery IPO raised ₹53.56 crore from anchor investors, locking in 22,04,202 shares on December 18, 2024. Anchor investors face a lock-in period:
- 50% lock-in ends: January 23, 2025
- Remaining lock-in ends: March 24, 2025
Lot Size and Investment Details
Investors can bid in multiples of 61 shares. Below is the investment range:
| Category | Minimum Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail Investors | 1 | 61 | 14,823 |
| S-NII (< ₹10 Lakhs) | 14 | 854 | 2,07,522 |
| B-NII (> ₹10 Lakhs) | 68 | 4,148 | 10,07,964 |
Mamata Machinery IPO GMP Today
Mamata Machinery IPO GMP was ₹260 on Monday, signaling that the stock could list at ₹503 on the bourses, up 107% over its upper end of the price band of ₹243.
Company Background and Financials
Incorporated in 1979, Mamata Machinery Limited specializes in manufacturing and exporting plastic bag-making machines, pouch machines, and packaging solutions. The company serves industries like FMCG, food, and beverages.
Financial Performance
| Metric | FY22 | FY23 | FY24 | Q1 FY25 |
|---|---|---|---|---|
| Total Revenue (₹ Cr) | 196.57 | 210.13 | 241.31 | 29.19 |
| Profit After Tax (₹ Cr) | 21.7 | 22.51 | 36.13 | 0.22 |
| Assets (₹ Cr) | 216.33 | 228.47 | 237.49 | 240.85 |
Key Ratios
- Return on Equity (ROE): 27.76%
- PAT Margin: 15.27%
- Debt-to-Equity: 0.09
Competitive Strengths
- Global Reach: Exports to 75+ countries, with offices in the US and sales agents in Europe, South Africa, and Asia.
- Strong Client Base: Includes Balaji Wafers, Dass Polymers, and Western India Cashew Company.
- Technological Expertise: Focus on innovation and customization with 87 skilled engineers in key domains.
Should You Invest?
While the IPO is priced at a premium based on Q1 FY25 results, Mamata Machinery’s historical performance and strong management team make it an attractive option for long-term investors. The company’s growth trajectory in the packaging machinery sector, coupled with its robust global presence, underscores its investment potential.
Pros
- Strong financial growth and profitability.
- Leadership in a niche market with advanced manufacturing capabilities.
- Experienced management and strategic expansion globally.
Cons
- Reliance on exports exposes the company to forex risks.
- High competition in the machinery sector.
Conclusion
Mamata Machinery IPO offers a unique investment opportunity in India’s thriving packaging and plastic machinery sector. With a focus on innovation, a strong client base, and significant financial growth, this IPO is worth considering for medium to long-term gains.
Disclaimer: This article is for informational purposes only. Investors should conduct their research or consult financial advisors before investing.