Mamata Machinery Ltd., a prominent manufacturer and exporter of packaging machinery, is set to launch its Initial Public Offering (IPO) on December 19, 2024. The company specializes in producing machines for plastic bags, pouches, and extrusion machinery, serving a diverse clientele across various industries, including FMCG, food, and beverages.
IPO Details:
- Issue Period: The subscription window opens on December 19, 2024, and closes on December 23, 2024.
- Price Band: The shares are priced between ₹230 and ₹243 per equity share, each with a face value of ₹10.
- Lot Size: Investors can bid in lots of 61 shares, with subsequent bids in multiples of 61 shares.
- Offer Structure: The IPO is entirely an Offer for Sale (OFS), comprising up to 7.38 million shares from existing shareholders and promoters. At the upper price band, this totals approximately ₹179.39 crore.
- Investor Allocation: The distribution is as follows: up to 50% for Qualified Institutional Buyers (QIBs), a minimum of 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors. Additionally, 35,000 equity shares are reserved for eligible employees, who are offered a discount of ₹12 per share.
Company Overview:
Mamata Machinery Ltd. is renowned for its comprehensive manufacturing solutions in the packaging sector. Their machinery is integral to producing packaging materials for various industries, notably food and FMCG products. The company’s clientele includes prominent names such as Balaji Wafers Pvt. Ltd., Chitale Foods, and Hershey India Pvt. Ltd. They also provide after-sales services, ensuring sustained client satisfaction.
Financial Performance:
In the fiscal year 2024, Mamata Machinery reported a revenue of ₹236.61 crore, an increase from ₹200.87 crore in the previous fiscal year. Net profit for the same period rose to ₹36.13 crore from ₹22.51 crore, indicating robust financial health and growth prospects.
Grey Market Premium (GMP):
The Grey Market Premium (GMP) serves as an indicator of investor sentiment toward an IPO before its official listing. As of December 18, 2024, Mamata Machinery’s IPO commands a GMP of +₹150. This suggests that shares are trading at a premium of ₹150 in the grey market, implying a potential listing price of ₹393 per share, which is approximately 61.73% above the upper IPO price of ₹243.
Key Dates:
- Anchor Investor Allocation: Scheduled for December 18, 2024.
- Basis of Allotment Finalization: Expected by December 24, 2024.
- Refunds Initiation: Likely on December 26, 2024.
- Demat Account Credit: Anticipated on December 26, 2024.
- Listing Date: Tentatively set for December 27, 2024, on both BSE and NSE.
Investment Considerations:
Investors should note that the IPO is purely an OFS, meaning the proceeds will go to existing shareholders rather than the company. While the GMP indicates strong investor interest and potential listing gains, it’s essential to consider the company’s financial health, market position, and growth prospects. Mamata Machinery’s consistent revenue and profit growth, along with a diverse client base, position it favorably in the packaging machinery sector.
Conclusion:
Mamata Machinery Ltd.’s upcoming IPO presents an opportunity for investors to participate in a company with a solid track record in the packaging machinery industry. The positive GMP suggests favorable market reception, though investors should conduct thorough due diligence and consider market conditions before making investment decisions.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investors are advised to consult with certified financial advisors before making any investment decisions.
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