Mamata Machinery IPO Blockbuster Listing: The stock of packaging machinery manufacturing company Mamata Machinery Limited has made a strong entry in the stock market today. The company’s shares were listed on BSE at a price of Rs 600, while the IPO price was Rs 243. In this context, Mamta Machinery’s stock has given a return of 147 percent or Rs 357 per share on listing. The IPO received a very strong response from investors, while there was a huge craze for it in the gray market also. Experts and brokerage houses have also been positive about its outlook. The question is whether profit should be booked after listing gains.
Mamata Machinery IPO: Subscribed 194.95 times
Mamta Machinery’s IPO was subscribed 194.95 times overall. In this, 50 percent share was reserved for QIB and it was subscribed 235.88 times overall. 15 percent share was reserved for NII and it was filled a total of 274.38 times. Whereas the reserve 35 per cent share for retail investors was filled 138.08 times. The reserved portion for employees was subscribed a total of 153.27 times.
How is the outlook of Mamata Machinery?
Brokerage house Choice Broking says that 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.
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 & 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
(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.)
