Mamata Machinery IPO Rating News : The IPO of packaging machinery manufacturing company Mamata Machinery Limited has opened for retail investors today i.e. on 19 December 2024, it can be subscribed till 23 December 2024. The company has fixed the price band for the IPO at Rs 230 to Rs 243 per equity share. The size of the IPO is Rs 179.39 crore. Whereas the lot size is 61 shares. This IPO is completely an Offer for Sale (OFS), in which a maximum of 7.38 million shares will be sold by the promoters and existing shareholders.
Under the offer for sale in the IPO, promoters Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagwati Patel and Mamta Group Corporate Services will sell their shares. The allotment of the company’s shares is expected to be finalized on Tuesday, December 24, 2024. Whereas the listing of Mamta Machinery will take place on BSE and NSE on 27th December.
Mamata Machinery GMP
There is a tremendous craze in the gray market regarding the IPO of Mamta Machinery Limited. The unlisted stock of the company is trading at a premium of Rs 150 in the gray market. This upper price band is a 62 percent premium to the market price of Rs 243.
Mamata Machinery: Advice to subscribe
Brokerage house Choice Broking has advised to “SUBSCRIBE” in the IPO of Mamta Machinery Limited. The brokerage house says Mamta Machinery specializes in manufacturing and exporting plastic bag and pouch making machines, packaging machines and extrusion equipment. Providing comprehensive manufacturing solutions to the packaging industry, the company’s products are used in various sectors including packaging of food and FMCG goods.
At its upper price band, the company is demanding a P/E multiple of 16.6x based on its FY24 EPS of Rs 14.7 and EV/Sales multiple of 2.6x, making this valuation seem at a discount to its peers. The company has consistently performed well over the last few years, with margins increasing consistently in the number of machines sold in India and internationally. Looking to the future, we believe the company has strong long-term growth potential by expanding its presence in regions such as Europe, Africa and the Middle East, which will further expand its customer base.
Company Strengths
• Customized systems and products through advanced manufacturing infrastructure and material expertise
• Technology driven operations with emphasis on quality, innovation and market driven product development.
• One of the leading exporters of machinery for bag and pouch making, packaging and co-extrusion blown film equipment and attachments.
• Skilled and experienced management team with committed workforce.
Risks and concerns
• Impact of price fluctuations, material shortages and supply disruptions on costs, timelines and financial performance.
• Dependence on FMCG, food and beverage and consumer industries
• Risks of failing to maintain optimal inventory levels
• Revenue concentration in the second half of the financial year
• Unfavorable foreign currency exchange rates
• Competition
how much reserve for whom
In this IPO, 50 percent share is reserved for Qualified Institutional Buyers (QIB). 15 percent is reserved for non-institutional investors (NII). Whereas 35% portion has been reserved for retail investors. 35,000 equity shares are reserved for the employees of the company. Employees will get a discount of Rs 12 per share.
(Disclaimer: The view or advice on the share is given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
