It was a Monday of IPOs, with subscriptions for shares of five companies, with Mamata Machinery, DAM Capital Advisors and Transrail Lighting closing, witnessing a staggering number of bids.
Mamata Machinery was the star that was oversubscribed by more than 195 times, fueled by strong demand from qualified institutional buyers, with its portion being oversubscribed by nearly 236 times, and the portion from non-institutional investors by over 274 times.
The entire issue of 73.8 lakh shares was an offer for sale by the promoters, aiming to raise a little over ₹179 crore, at the higher end of the price band of ₹230-243 per share.
The company manufactures and exports plastic bags, pouch making machines, packaging machines and extrusion equipment. The customers come from the FMCG, food and beverage sectors. According to the red herring prospectus, the country exports to more than 75 countries. It has two factories to make machines, one in India and the other in the US.
The IPO of investment bank Dam Capital Advisors was subscribed to almost 82 times, with 166 QIB requests again and more than 98 non-institutional requests. It was also an OFS where the promoters wanted to raise ₹840 crore at the top end of the price band of ₹269-283 per share.
EPC company Transrail Lighting’s IPO worth ₹839 crore was oversubscribed nearly 81 times, with over ₹48,576 crore worth of bids coming in from over 40 lakh applications. The QIB part was 201 times oversubscribed and non-institutional (more than 76 times).
Transrail’s IPO will consist of a fresh issue leg where the company will raise up to ₹400 crore and ₹439 crore worth of shares will be sold by the promoters. The price range was set at ₹410-432 per share.
Two other mainboard IPOs that ended today, Sanathan Textiles and Concord Enviro Systems, also saw healthy interest.
Sanathan Textiles’ IPO was subscribed just over 35 times, while Concord’s was about 11 times. The Concord IPO included a fresh issue of ₹175 crore and a valuation of ₹325.33 crore and hit the primary market with a price range of ₹665-701. On the other hand, the yarn maker’s ₹550 crore IPO (₹400 crore fresh issue and ₹150 crore OFS) came out with a price range of ₹305-321.
