Mamata Machinery IPO starts tomorrow: GMP, problem details, 10 important things to know

Mamata Machinery’s IPO opens for registration tomorrow (Thursday, December 19). The company manufactures and exports plastic bag and pouch making machines, packaging equipment and extrusion machines. They offer comprehensive production solutions for the packaging sector. The items produced by their machines find applications in various packaging industries, including food and FMCG products. The company sells its packaging machines primarily to consumer brands serving the FMCG, food and beverage industries, as well as bag and pouch making machines to converters and service providers, primarily serving the FMCG and consumer industries.

Mamata Machinery serves a diverse clientele including Balaji Wafers Private Ltd, Dass Polymers Private Ltd, Jflexy Packaging Private Ltd, Euphoria Packaging Private Ltd, Sunrise Packaging, Om Flex India, Chitale Foods, V3 Polyplast Private Ltd, Dhalumal Packaging Industries LLC, Laxmi Snacks Private Ltd, Ganges Jute Private Limited, Western India Cashew Company Private Ltd, NN Print & Pack Private Limited, Gits Food Products Private Ltd, Emirates National Factory for Plastic Ind LLC, Dhwani Polyprints Private Ltd, Kamakshi Suedpack Private Limited, Bansal Industries and Hershey India Private Ltd. In addition, the company offers after-sales services to its customers.

According to the red herring prospectus (RHP), the company’s similarly listed competitors include Rajoo Engineers Ltd (with a price-to-earnings ratio of 57.16), Windsor Machines Ltd and Kabra Extrude Technik Ltd (with a price-to-earnings ratio of 30. 64). .

For fiscal year 2024, the company reported revenues of ₹236.61 crore, rising from ₹200.87 crore in the previous financial year. During this period, net profit grew to ₹36.13 crore, up from ₹22.51 crore in the previous year.

Here are the top 10 things you need to know about Mamata Machinery’s IPO

Mamata Machinery IPO date: The IPO opens for subscription on Thursday, December 19 and closes on Monday, December 23.

Mamata Machinery IPO price range: The IPO price range is set in the range of ₹230 to ₹243 per share of equity having a nominal value of ₹10.

Mamata Machinery IPO lot size: The lot size is 61 shares and thereafter in multiples of 61 shares.

Anchor Investors: The allotment to investors for Mamata Machinery’s IPO is scheduled for today (Wednesday, December 18).

Mamata Machinery IPO details: The IPO consists entirely of an offer for sale (OFS) that includes up to 7.38 million shares from promoters and current shareholders. If it is priced in the highest band, the total value of the issue will increase ₹179.39 crore.

The company’s promoters include Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagvati Patel and Mamata Group Corporate Services.

Mamata Machinery’s IPO target: The purpose of the offer is to facilitate the offer for sale (OFS) of as many as 7,382,340 shares by the selling shareholders and realize the benefits of listing these shares on the stock exchanges.

Mamata Machinery IPO listing date and allotment details: For now, Mamata Machinery’s IPO basis for allotment of shares will be finalized on Tuesday, December 24, and the company will commence redemption on Thursday, December 26, while the shares will be deposited into the demat account of the company on the same day after redemption assignees will be credited. Mamata Machinery’s share price is likely to be listed on BSE and NSE on Friday, December 27.

Principal Manager and Registrar of IPO of Mamata Machinery: Beeline Capital Advisors Pvt Ltd is acting as book running lead manager for Mamata Machinery’s IPO, while Link Intime India Private Ltd is acting as registrar for this issue.

Mamata Machinery IPO booking: The IPO has not more than 50% of the shares in the public issue reserved for qualified institutional buyers (QIB), not less than 15% for non-institutional institutional investors (NII), and not less than 35% of the offering is reserved for private investors. The employee portion is reserved for a maximum of 35,000 shares. A discount of ₹12 per share of stock is offered to eligible employees who bid in the employee reservation section.

Mamata Machinery IPO GMP today: Mamata Machinery IPO gray market premium or is +150. This indicates that Mamata Machinery stock price at a premium of ₹150 on the gray market, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current gray market premium, the estimated listing price of Mamata Machinery’s share price was indicated at ₹393 per piece, which is 61.73% higher than the IPO price of ₹243.

Based on the gray market activities observed over the past six sessions, the IPO GMP is trending upward today, indicating a robust listing. The minimum registered GMP is ₹75, while the maximum is ₹150, according to experts at investorgain.com.

The ‘grey market premium’ indicates that investors are willing to pay more than the issue price.

Disclaimer: The views and recommendations expressed in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to contact certified experts before making investment decisions.