Mamata Machinery IPO Subscription Status and GMP : The IPO of packaging machinery manufacturing company Mamata Machinery Limited is on its way to become a big blockbuster IPO of the year 2024. The IPO is getting tremendous subscription from investors. The craze for it is increasing in the gray market and its premium has crossed 80 percent. This IPO is open for investment from 19 December to 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. Brokerage houses are also positive on this.
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Mamata Machinery IPO: Subscription Status
Mamta Machinery’s IPO has so far been subscribed 30.6 times or 3060 percent. In this, 50 percent share is reserved for QIB and till now it has been subscribed 288 percent. 15 percent share is reserved for NII and till now it has been filled 37.72 times or 3772 percent. Whereas the reserve of 35 per cent for retail investors is filled 43.17 times or 4317 per cent. The reserved portion for employees has received 47.19 times subscription so far.
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 200 in the gray market. This upper price band is 82 percent premium at Rs 243. If we look at the gray market indications, this stock may be listed at Rs 443 as compared to the issue 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.
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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.
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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
(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.)
