Mamata Machinery is a prominent manufacturer and exporter of plastic bag/pouch making machines with an installed base of over 4,500 machines across more than 75 countries. The company is now launching an IPO of ₹179.39 Crores, consisting entirely of an Offer for Sale of 73.82 Lakh Shares. The subscription period for the Mamata Machinery IPO is from December 19, 2024, to December 23, 2024, with the allotment expected to be finalized by December 24, 2024. The tentative listing date is set for December 27, 2024.

IPO Details

The price band for the Mamata Machinery IPO is ₹230 to ₹243 per equity share, and the company's market capitalization at the upper price band of ₹243 will be ₹597.96 Crores. The lot size is 61 shares, and the minimum investment for retail investors is ₹14,823. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,07,522 for 854 shares.

The book-running lead manager for the IPO is Beeline Capital Advisors Private Limited, and Link Intime India Private Limited is the registrar for the issue.

Grey Market Premium (GMP) and Market Outlook

The Grey Market Premium (GMP) for Mamata Machinery is ₹197, suggesting a potential listing gain of 81.24% based on current trends. However, the GMP is not a guaranteed indicator of the listing price and is only useful as a market sentiment measure before the shares are listed on the exchange.

Subscription Status and Anchor Investors

As of December 23, 2024, the Mamata Machinery IPO has been subscribed 63.42 times, reflecting strong demand from investors. The company raised ₹53.56 Crores from anchor investors, allocating 22,04,202 equity shares at ₹243 per share. This institutional interest further strengthens the IPO's market position.

Financial Performance and IPO Valuation

For the period ending June 30, 2024, Mamata Machinery reported ₹291.93 million in revenue, with an EBITDA of ₹12.5 million and a Profit After Tax of ₹2.18 million. Over the past three fiscal years, the company has shown consistent growth in revenue, though it is still in the early stages of scaling. The pre-issue Earnings Per Share (EPS) is ₹14.65, with a post-issue EPS of ₹14.68. This gives a P/E ratio of 16.59x (pre-issue) and 16.55x (post-issue), well below the industry average of 44x, making the IPO attractively priced for investors.

The company’s ROCE for FY24 stands at 31.29%, and RoE is 27.76%, indicating strong returns on capital employed and equity, adding to the appeal of the IPO.

Recommendation for Investors

Given the high GMP, strong subscription figures, and attractive valuation, we recommend the Mamata Machinery IPO for risky investors looking for potential listing gains or those interested in long-term investment. The financials indicate a robust growth trajectory, and the relatively low P/E ratio compared to industry standards adds to the investment appeal.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, 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.