Mamata Machinery Limited is set to launch its Initial Public Offering (IPO) on December 19, 2024, aiming to raise ₹179.39 crore through an offer for sale (OFS) of 0.74 crore shares. The IPO is entirely an OFS, with no fresh issue of equity. The price band has been set at ₹230 to ₹243 per share, and the issue will remain open for subscription until December 23, 2024.

• Issue Size: ₹179.39 crore
• Lot Size:
  • Retail Investors: 61 shares (minimum investment of ₹14,823)
  • sNII: 14 lots (₹207,522)
  • bNII: 68 lots (₹1,007,964)
• Book Running Lead Manager (BRLM): Beeline Capital Advisors Pvt Ltd
• Registrar: Link Intime India Private Ltd
• Listing: Shares will list on BSE and NSE on December 27, 2024 (tentative).

Company Overview

Mamata Machinery Limited, established in April 1979, is a leading manufacturer and exporter of machines for producing plastic bags, pouches, packaging, and extrusion equipment. Over its decades-long history, the company has built a strong reputation for its customer-centric approach and global reach.

• Core Products and Solutions: The company manufactures machinery for bag and pouch production, as well as co-extrusion blown film machinery.
• Industries Served: FMCG, Food, and Beverage sectors.
• Global Presence:
  • Exported to over 75 countries as of May 31, 2024.
  • International offices in Florida and Illinois, with agents across Europe, South Africa, and Asia.
• Manufacturing Facilities:
  • India
  • USA

The company boasts 87 skilled engineers specializing in electronics, mechanics, software, and design, ensuring advanced and customized solutions for its clients.

Competitive Strengths

1. Global Leader in Machinery Exports: Mamata Machinery is recognized for exporting high-quality bag and pouch-making equipment to clients worldwide.
2. Cutting-Edge Manufacturing: The company utilizes advanced tools and materials, tailoring its products to meet unique customer demands.
3. Customer-Centric Approach: With a robust sales and distribution network, the company ensures seamless service to clients in diverse geographies.
4. Experienced Leadership: Backed by a team of industry experts, Mamata Machinery has developed a strong competitive edge in its niche.

IPO Timeline

• Subscription Period: December 19, 2024 – December 23, 2024
• Allotment Date: December 24, 2024
• Listing Date: December 27, 2024 (tentative)

Key Financials and Market Position

Mamata Machinery has maintained a strong presence in the packaging machinery sector, which is witnessing growth due to rising demand from FMCG and food industries. The company’s ability to export to 75+ countries underlines its global competitiveness and operational efficiency.

The IPO will give investors the opportunity to invest in a company with:

• A proven track record of innovation and quality.
• A growing market for its products globally.
• Established relationships with marquee clients like Balaji Wafers Private Limited, Gits Food Products Private Limited, and others.

Investment Considerations

• Strengths:

  • Strong export-driven business model with a wide geographic reach.
  • Long-standing relationships with reputed clients.
  • Advanced manufacturing capabilities tailored to client needs.

• Risks:

  • High dependency on the FMCG and packaging sectors.
  • Competition from domestic and international machinery manufacturers.

Conclusion

The Mamata Machinery IPO offers a unique investment opportunity for those looking to participate in a niche manufacturing company with a strong export focus. With its robust operational history, established client base, and expanding global footprint, Mamata Machinery is well-positioned to benefit from the growing demand in the packaging industry.

Investors, particularly retail participants, should carefully evaluate the price band, investment requirements, and company fundamentals before subscribing to this IPO.