Mamata Machinery, a leading manufacturer and exporter of plastic bag and pouch making machines, is offering its IPO to raise ₹179.39 Crores. The IPO consists entirely of an offer for sale of 73.82 lakh shares. The subscription window for the IPO opened on December 19, 2024, and closes on December 23, 2024. The lot size is 61 shares, and the price band is set at ₹230 to ₹243 per equity share. Retail investors can subscribe with a minimum investment of ₹14,823, while High-Net-Worth Individuals (HNIs) can invest a minimum of ₹2,07,522 for 14 lots (854 shares).

At the upper price band of ₹243 per share, the market capitalization of Mamata Machinery Limited will be ₹597.96 Crores. The company is a prominent player in the flexible packaging and converting machinery markets, serving over 75 countries and with an installed base of more than 4,500 machines. The company’s clients include some of the biggest names in the plastic packaging industry, making it a strong competitor in a rapidly evolving market.

Mamata Machinery IPO Financials and P/E Ratio

Mamata Machinery has reported impressive financials over the past few years. For the period ending June 30, 2024, the company reported revenue of ₹291.93 million, an increase from ₹2413.0 million in FY2024. The EBITDA for FY2024 stood at ₹518.75 million, while the Profit After Tax (PAT) for the same period was ₹361.25 million. The company has shown consistent revenue growth, with strong profit margins, making it a profitable player in the global machinery market.

For the IPO, Mamata Machinery has reported a pre-issue EPS of ₹14.65 and a post-issue EPS of ₹14.68. The P/E ratio at the pre-issue price is 16.59x, and the post-issue P/E ratio is 16.55x, which is well below the industry P/E ratio of 44x, suggesting that the IPO is attractively priced. The company also boasts a Return on Capital Employed (ROCE) of 31.29% and a Return on Equity (ROE) of 27.76% for FY24, further solidifying its financial stability and growth potential.

Mamata Machinery IPO GMP and Expected Listing Gains

The Grey Market Premium (GMP) for the Mamata Machinery IPO is showing strong demand, with a GMP of ₹197 as of December 19, 2024. This represents a potential listing gain of 81.24% if the shares list at the expected price of ₹440 per share. While GMP is an unofficial market indicator and does not guarantee listing prices, it suggests strong investor interest and could be an indicator of short-term listing gains.

Subscription and Allotment Status

As of 7:00 PM on December 20, 2024, the Mamata Machinery IPO had been subscribed 37.75 times on its second day of subscription. The IPO is showing significant demand across retail and institutional investors. The allotment for the IPO is expected to be finalized on December 24, 2024, and can be checked through the registrar’s website by entering the application number, PAN, or DP Client ID.

Mamata Machinery IPO Review

The Mamata Machinery IPO is being led by strong promoters such as Mahendra Patel, Chandrakant Patel, and Nayana Patel, with a proven track record in the industry. The company's long-standing presence in the global market, coupled with its solid financials, makes it an attractive investment option for long-term investors and those seeking listing gains.

The company operates in the flexible packaging sector, which is rapidly evolving, with increasing demand for cost-effective and efficient solutions for packaging needs. This positions Mamata Machinery well for sustained growth in the future. Despite challenges in the market, the company has been able to maintain its competitiveness through innovation, solid customer relationships, and efficient operations.

Conclusion

In conclusion, the Mamata Machinery IPO offers an attractive opportunity for investors, with strong financials, a competitive market position, and the potential for listing gains. With a reasonable valuation, the IPO is likely to see strong demand. Risk-seeking investors may consider subscribing to this IPO for both listing gains and long-term capital appreciation. The GMP and subscription status reflect the positive market sentiment, making this IPO an enticing option for investors.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX