Mamata Machinery Ltd, a Gujarat-based manufacturer of packaging machinery, launched its initial public offering (IPO) on Thursday, December 19. The subscription window remains open until December 23, with a price band set between ₹230 and ₹243 per share. Ahead of the IPO, the company raised ₹53.56 crore from anchor investors by allotting 22.04 lakh shares to seven investment funds at the upper price band.
Company Profile
Mamata Machinery specializes in manufacturing solutions for the flexible packaging industry. Its products are marketed under the flagship brands “Vega” and “Win,” covering the entire value chain of flexible packaging. At the upper price point, the company’s market capitalization is estimated at approximately ₹600 crore.
IPO Details
- Structure: The IPO is an offer-for-sale (OFS) of up to 7.38 million shares by promoters and existing shareholders.
- Promoters: Major participants in the OFS include Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagvati Patel, and Mamata Group Corporate Services.
- Proceeds: If priced at ₹243, the upper limit, the offering is expected to raise ₹179.39 crore.
- Allocation:
- 50% reserved for Qualified Institutional Buyers (QIBs),
- 35% for retail investors,
- 15% for Non-Institutional Investors (NIIs).
Subscription Status
Mamata Machinery’s IPO has seen strong investor demand:
- Day 2 (as of 11:50 AM): Subscribed 24.32 times, with bids for 12.68 crore shares against the 51.78 lakh shares on offer.
- Retail Investors: 33 times.
- NIIs: 27.83 times.
- QIBs: 1.52 times.
- Employee quota: 37.81 times.
- Day 1 Summary: Subscribed 16.48 times overall.
- Retail segment: 23.84 times.
- NIIs: 18.87 times.
- QIBs: 1.51 times.
- Employee category: 28.70 times.
Grey Market Premium (GMP)
The grey market premium (GMP) for Mamata Machinery’s IPO currently stands at ₹260, suggesting a potential listing price of ₹503 per share—107% higher than the upper issue price. The GMP has consistently risen over the last eight sessions, reflecting high investor confidence and expectations of a strong debut.
IPO Objectives
The IPO aims to facilitate the offer-for-sale by existing shareholders and provide listing benefits on stock exchanges.
Key Management
- Lead Manager: Beeline Capital Advisors Pvt Ltd.
- Registrar: Link Intime India Private Ltd.
Mamata Machinery’s strong market presence, robust subscription figures, and high GMP signal a promising debut for the company on the stock exchanges.
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