Mamata Machinery IPO Gets 16.49x Subscription On Day 1: Should You Apply? Check GMP, Price, Review – News18


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Mamata Machinery IPO GMP: Unlisted shares of Mamata Machinery are trading at Rs 443 in the grey market, reflecting a premium of Rs 200 (82.3%) over the upper price band of Rs 243, indicating stellar market debut.

Mamata Machinery IPO.

The IPO of Mamata Machinery Ltd, a Gujarat-based manufacturer of packaging machinery, opened on Thursday to an enthusiastic response. Within the first hour of bidding, the IPO was subscribed over three times. The price band for the offering is set between Rs 230 and Rs 243 per share.

By 5:00 pm on the first day, the Rs 179.39-crore public issue garnered bids for 8,54,01,586 shares, significantly surpassing the 51,78,227 shares on offer, resulting in a subscription rate of 16.49 times.

Category-Wise Subscription:

  • Retail Investors: 23.87 times subscription
  • Non-Institutional Investors (NII): 18.88 times subscription
  • Qualified Institutional Buyers (QIB): 1.51 times subscription

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 Signals Strong Listing

As per market analysts, the unlisted shares of Mamata Machinery are trading at Rs 443 in the grey market, reflecting a premium of Rs 200 (82.3%) over the upper price band of Rs 243. This indicates a potentially stellar listing 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. The investors include:

  • 3P India Equity Fund
  • Authum Investment and Infrastructure
  • Winro Commercial (India) Ltd
  • Subhkam Ventures
  • Chartered Finance and Leasing
  • Belgrave Investment Fund
  • Aarth AIF

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.

Issue Allocation

  • 50% reserved for Qualified Institutional Buyers (QIBs)
  • 35% for Retail Investors
  • 15% for Non-Institutional Investors

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.

News business » ipo Mamata Machinery IPO Gets 16.49x Subscription On Day 1: Should You Apply? Check GMP, Price, Review



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