Mamata Machinery IPO: A Strong Market Debut
Mamata Machinery Limited has made a remarkable market debut with its shares hitting the upper circuit at ₹630, following a listing at a significant 147% premium over the IPO price. The company's stock surged by an additional 5% after its strong market entry, drawing attention from investors and analysts alike. The initial public offering (IPO), amounting to ₹179 crore, was fully an Offer for Sale (OFS), with 73,82,340 shares being sold by the promoters and other shareholders.

IPO Details and Performance
The Mamata Machinery IPO, priced between ₹230 to ₹243 per share, quickly gained traction among investors. The company’s Grey Market Premium (GMP) reached an impressive ₹197, reflecting strong demand and investor confidence. As the IPO subscription period closed on December 23, 2024, the offering was subscribed 194.95 times, underscoring its popularity in the market. On December 27, 2024, Mamata Machinery's shares were officially listed on both the BSE and NSE, and the stock promptly surged to ₹630, indicating a robust market debut.

Company Overview and Global Reach
Mamata Machinery is a leading manufacturer and exporter of plastic bag and pouch-making machines globally, with a significant presence in over 75 countries. The company has an installed base of more than 4,500 machines, which positions it as a major player in the flexible packaging industry. The company’s success can be attributed to its ability to maintain cost competitiveness while addressing the constantly evolving flexible packaging and converting markets. Mamata’s focus on quality, versatility, and innovation has been key to its growth.

IPO Financials and Key Metrics
The financials of Mamata Machinery show strong performance over the years. For the fiscal year ending June 30, 2024, the company reported revenues of ₹2,413 million, with a Profit after Tax (PAT) of ₹361.25 million. For the same period, the EBITDA stood at ₹518.75 million, showcasing the company’s profitability and operational efficiency. Mamata’s Return on Capital Employed (ROCE) for FY24 is 31.29%, and the Return on Equity (RoE) is 27.76%, making it an attractive investment option.

The IPO's pre-issue Earnings Per Share (EPS) was ₹14.65, while the post-issue EPS stands at ₹14.68, reflecting minimal dilution of shares. The price-to-earnings (P/E) ratio of the IPO is 16.59x, which is below the industry average of 44x, making the stock relatively undervalued compared to its peers.

Mamata Machinery IPO Subscription and Allotment
The Mamata Machinery IPO was open for subscription from December 19 to December 23, 2024, and witnessed an overwhelming response from both retail investors and high-net-worth individuals (HNIs). The company allocated 22,04,202 equity shares to anchor investors, raising ₹53.56 crore. The final allotment of shares was made on December 24, 2024, and investors can check their allotment status on the registrar's website.

For retail investors, the minimum investment amount was ₹14,823 for a lot size of 61 shares, while HNIs had to invest in 14 lots (854 shares), totaling ₹2,07,522. With such a strong response, investors are now eagerly awaiting the stock's performance in the coming weeks.

Mamata Machinery: Looking Ahead
Mamata Machinery’s solid debut and strong financials suggest that the company is well-positioned for future growth. With a robust market capitalization of approximately ₹597.96 crore at the IPO price of ₹243 per share, the company is poised for further expansion in the plastic packaging and converting industry. Investors who have subscribed to the IPO or are considering investing in the stock should keep an eye on the company’s performance as it navigates its post-IPO journey.

The Upcoming IPOs in this week and coming weeks are Indo Farm, Technichem Organics, Leo Dry Fruits, Solar91 Cleantech, Rosmerta Digital and Avanse Financial.

The Current active IPO is Citichem India and Anya Polytech.

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