Mamata Machinery is a prominent global player in the manufacturing and export of plastic bag and pouch making machines, with over 4500 machines installed across 75 countries. As the demand for flexible packaging evolves, Mamata Machinery maintains its competitive edge by offering high-quality, versatile machines while addressing industry changes swiftly. The company’s robust presence and commitment to innovation have positioned it as a leader in the packaging machinery sector.

This Book Built Issue IPO seeks to raise ₹179.39 Crores, consisting entirely of an Offer for Sale (OFS) of 73.82 Lakh shares. The price band for the IPO is set between ₹230 and ₹243 per share, with a market capitalization at the upper end of the price band totaling ₹597.96 Crores. The lot size for retail investors is set at 61 shares, requiring a minimum investment of ₹14,823. For High-Net-Worth Individuals (HNIs), the minimum investment is for 14 lots (854 shares), amounting to ₹2,07,522.

The IPO subscription period will begin on December 19, 2024 and close on December 23, 2024. The allotment process will be finalized by December 24, 2024, and the shares will list on both the BSE and NSE with a tentative listing date set for December 27, 2024.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for the Mamata Machinery IPO is currently at ₹145, which indicates a potential listing gain of 59.67%. The GMP is an unofficial market indicator and should be interpreted with caution as it depends on demand-supply dynamics before the listing.

The subscription status for the IPO will be tracked closely, with the subscription period starting soon. Investors can monitor real-time updates on the IPO's progress and demand.

Anchor Investors and Financial Performance

Mamata Machinery has successfully raised ₹53.56 Crores from Anchor Investors, securing 22,04,202 equity shares at the upper IPO price of ₹243 per share. This reflects the confidence institutional investors have in the company’s future growth potential.

The financial performance of Mamata Machinery for FY2024 shows strong results. The revenues from operations for FY2024 amounted to ₹2,413.0 Million, up from ₹2,101.29 Million in FY2023, and ₹1,965.68 Million in FY2022. The Profit After Tax (PAT) for FY2024 stood at ₹361.25 Million, highlighting strong profitability. The EBITDA for FY2024 was ₹518.75 Million, indicating solid operational efficiency.

For the IPO, the company is issuing shares at a pre-issue EPS of ₹14.65 and a post-issue EPS of ₹14.68. The pre-issue P/E ratio is 16.59x, and the post-issue P/E ratio is 16.55x, which is below the industry P/E ratio of 44x, suggesting that the IPO is reasonably priced. The company has a Return on Capital Employed (ROCE) of 31.29% and a Return on Equity (RoE) of 27.76%, reflecting strong returns and efficient use of capital.

Investment Recommendation

Given the GMP trend of 59.67%, strong financial performance, and competitive pricing of the IPO, we recommend risky investors to apply for the Mamata Machinery IPO for potential listing gains or to consider it for long-term investment. The company's established market presence, solid financials, and strong leadership make it an attractive option for investors seeking growth in the machinery manufacturing and packaging sectors.

The Upcoming IPOs in this week and coming weeks are Transrail Lighting, Mamata Machinery, DAM Capital  Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is Identical Brain Studios and NACDAC Infrastructure.
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