Mamata Machinery IPO: 82% Grey Market Premium – Is ₹443 the Next Stop?

• Mamata Machinery IPO for global expansion
• Mamata Machinery IPO opens with strong demand
• Mamata Machinery IPO oversubscribed, strong GMP

Mamata Machinery IPO: 82% Grey Market Premium – Is ₹443 the Next Stop?

Mamata Machinery IPO for global expansion

Mamata Machinery IPO: 82% Grey Market Premium Mamata Machinery has established a significant presence in the global packaging machinery market, leveraging its robust infrastructure and engineering expertise. The company is well-known for its commitment to sustainability, designing machines that optimize resource use while minimizing environmental impact. Its flexible packaging solutions cater to a wide range of applications, including pouch making, bag making, and form-fill-seal machines, which are vital for industries seeking efficient and scalable packaging solutions.

In addition to its focus on innovation, Mamata Machinery places a strong emphasis on after-sales support, providing customers with comprehensive maintenance services and technical assistance. This customer-first approach has earned the company accolades and a loyal client base worldwide.

With a track record of consistent growth, Mamata Machinery has also invested in research and development to stay ahead in a competitive market. Its ability to adapt to evolving industry trends, such as the growing demand for automation and eco-friendly packaging solutions, underscores its position as a forward-thinking industry leader.

The company’s participation in this IPO reflects its ambition to expand its market reach, enhance its technological capabilities, and further solidify its leadership in the packaging machinery domain.

Mamata Machinery IPO opens with strong demand

Mamata Machinery IPO: 82% Grey Market Premium Mamata Machinery’s IPO has opened for subscription, offering shares priced in the range of ₹230-243 per share. The company, renowned for its packaging machinery solutions, reported an increase in revenue to ₹236.61 crore in FY 2024, up from ₹200.87 crore in the previous fiscal year. The IPO comprises a complete Offer for Sale (OFS) of 7.38 million shares by existing shareholders.

Key details include:

• Subscription Period: Opened on December 19, 2024, and closes on December 23, 2024.
• Price Band: ₹230-243 per equity share.
• Lot Size: Minimum of 61 shares and multiples thereafter.
• Anchor Investor Allocation: Scheduled on December 18, 2024.
• IPO Size: The OFS is valued at ₹179.39 crore at the upper price band.

Mamata Machinery IPO: 82% Grey Market Premium The promoters—Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagvati Patel, and Mamata Group Corporate Services—aim to list the shares on stock exchanges and leverage the benefits of public listing. The issue has designated Beeline Capital Advisors Pvt Ltd as the book-running lead manager and Link Intime India Pvt Ltd as the registrar.

For FY 2024, Mamata Machinery recorded a net profit of ₹36.13 crore, a significant rise from ₹22.51 crore in FY 2023. The company specializes in machinery for plastic bag and pouch production, catering to industries like FMCG, food, and beverages. Clients include notable names like Hershey India Pvt Ltd, Balaji Wafers Pvt Ltd, and Laxmi Snacks Pvt Ltd.

The IPO has seen a positive reception in the grey market, with a premium of ₹150 per share, suggesting an estimated listing price of ₹393—61.73% higher than the IPO price. Experts note an upward trend in grey market premium over the past six sessions, reflecting strong investor interest.

Reservations for the IPO are allocated as follows: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors, with up to 35,000 shares reserved for employees at a ₹12 discount per share. Shares are expected to list on December 27, 2024, on BSE and NSE.

Investors are encouraged to consult certified financial advisors before making decisions.

Mamata Machinery IPO oversubscribed, strong GMP

Mamata Machinery IPO: 82% Grey Market Premium Mamata Machinery’s IPO saw an overwhelming response, being oversubscribed 3 times within hours of its opening on December 19, 2024. The IPO, which aims to raise ₹179.39 crore through the sale of 74 lakh shares by promoters and existing shareholders, is set to close on December 23, 2024.

Key Subscription Highlights:

• Retail Investors: Oversubscribed 4.88 times.
• Employee Category: Oversubscribed 4.35 times.
• Non-Institutional Investors (NII): Oversubscribed 2.99 times.
• Qualified Institutional Buyers (QIBs): Yet to make significant investments.

Grey Market Premium (GMP):

Mamata Machinery IPO: 82% Grey Market Premium The IPO shares were trading at a premium of 82% in the grey market, suggesting a potential listing price of ₹443 per share, well above the issue price of ₹230-243. GMP is often seen as an indicator of expected listing gains.

IPO Details:

• Price Band: ₹230-243 per equity share.
• Lot Size: Retail investors can apply for a minimum of 61 shares, requiring an investment of ₹14,823.
  • Small NIIs: Can apply for 14 lots (854 shares).
  • Big NIIs: Can apply for 68 lots (4,148 shares).
• Employee Reservation: Up to 35,000 shares, with a discount of ₹12 per share.

Timeline:

• Allotment Finalization: December 24, 2024.
• Listing Date: Expected on December 27, 2024, on NSE and BSE.

Valuation and Recommendation:

Mamata Machinery IPO: 82% Grey Market Premium At the upper price band, Mamata Machinery’s valuation stands at a P/E of 16.6x with a post-issue market cap of ₹597.6 crore and a return on net worth of 27.4% based on FY24 performance. Analysts, including Anand Rathi Research, consider the IPO fairly priced compared to peers and recommend a “Subscribe” rating.

IPO Management:

Mamata Machinery IPO: 82% Grey Market Premium Beeline Capital Advisors is the book-running lead manager, and Link Intime India Pvt Ltd is the registrar for this offering.