Mamata Machinery IPO is one of the much-awaited IPOs of the year, set to open on December 19, 2024, and close on December 23, 2024. This Book Built Issue aims to raise ₹179.39 crores, comprising a fresh issue and an offer for sale (OFS) of up to 73,82,340 equity shares with a face value of ₹10 per share. The price band for this IPO has been set at ₹230 to ₹243 per share, offering exciting opportunities for investors. Let’s dive into the details and understand why this IPO has generated significant buzz in the financial markets.
About Mamata Machinery Limited
Founded in 1979, Mamata Machinery Limited specializes in manufacturing and exporting plastic pouch sealing machines, packing machinery, plastic bag production machines, and extrusion equipment. The company primarily caters to industries in FMCG, food, and beverage sectors, and boasts a global presence. With over 800 machines in Africa, 100 machines in the USA, and a significant footprint in India, Mamata Machinery is a leader in its domain.
Their vision is to become a globally recognized leader in flexible packaging solutions. Over the years, the company has maintained strong financial performance and continues to innovate in the packaging sector, ensuring its relevance in a competitive market.
IPO Details and Key Dates
Here are the critical details and timeline for the Mamata Machinery IPO:
| Details | Key Information |
|---|---|
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Face Value | ₹10 per equity share |
| Price Band | ₹230 to ₹243 per share |
| Issue Size | Approx. ₹179.39 crores |
| Offer for Sale | 73,82,340 equity shares |
| Listing Exchange | BSE & NSE |
| Basis of Allotment Date | December 24, 2024 |
| Refund Initiation Date | December 26, 2024 |
| Credit to Demat Accounts | December 26, 2024 |
| Listing Date | December 27, 2024 |
IPO Market Lot Details
The minimum market lot for Mamata Machinery IPO is 61 shares, amounting to ₹14,823. Retail investors can apply for up to 13 lots, which translates to 793 shares or ₹1,92,699.
| Application Type | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 61 | ₹14,823 |
| Retail Maximum | 13 | 793 | ₹1,92,699 |
| S-HNI Minimum | 14 | 854 | ₹2,07,522 |
| B-HNI Minimum | 68 | 4,148 | ₹10,07,964 |
Financial Performance
Mamata Machinery has demonstrated consistent growth in revenue and profitability over the years. Below are the financial highlights:
| Year | Revenue (₹ in Crores) | Expenses (₹ in Crores) | Profit (₹ in Crores) |
| FY2022 | 196.57 | 167.03 | 21.70 |
| FY2023 | 210.13 | 181.61 | 22.51 |
| FY2024 | 241.31 | 194.38 | 36.13 |
Key metrics for FY2024:
- Return on Equity (ROE): 27.76%
- Return on Capital Employed (ROCE): 31.29%
- PAT Margin: 15.27%
- Debt-to-Equity Ratio: 0.09
- Net Asset Value (NAV): ₹53.59
The company’s strong financial health and consistent growth make it a promising investment opportunity for both short-term and long-term investors.
Allotment and Listing Details
The IPO allotment will be finalized on December 24, 2024, with refunds initiated on December 26, 2024. Investors can expect shares to be credited to their Demat accounts by December 26, 2024, and the listing is scheduled for December 27, 2024, on both the BSE and NSE.
IPO Quota Allocation
The IPO quota distribution ensures participation from different investor categories:
- Retail Investors: 35%
- Qualified Institutional Buyers (QIBs): 50%
- Non-Institutional Investors (NIIs): 15%
Promoters and Management
The promoters of Mamata Machinery include:
- Mahendra Patel
- Chandrakant Patel
- Nayana Patel
- Bhagvati Patel
- Mamata Group Corporate Services LLP
- Mamata Management Services LLP
Their collective leadership has guided the company toward sustainable growth and market expansion.
Peer Comparison
When comparing Mamata Machinery to its peers, the company shows impressive performance metrics:
| Company | EPS | PE Ratio | RoNW (%) | NAV (₹) | Revenue (₹ Cr.) |
| Rajoo Engineers Limited | 3.41 | 57.16 | 16.59 | 20.59 | 201.29 |
| Windsor Machines Limited | (1.19) | NA | (2.89) | 41.07 | 356.92 |
| Kabra Extrusion Technik Limited | 9.80 | 30.64 | 7.48 | 134.52 | 614.66 |
With an EPS of ₹14.65 and RoNW of 27.39%, Mamata Machinery stands out as a strong contender in its industry.
Risks to Consider
Investors should keep in mind the following potential risks:
- Market Volatility: The stock market can be unpredictable, impacting listing gains or long-term growth.
- Competition: Mamata Machinery faces competition from both domestic and international players.
- Industry Dependency: The company’s performance is tied to the FMCG, food, and beverage sectors.
Growth Opportunities
- Global Expansion: Mamata Machinery has a robust international presence and opportunities to further penetrate untapped markets.
- Rising Demand for Packaging Solutions: The growing need for flexible packaging in FMCG and e-commerce industries bodes well for the company’s growth.
- Innovation in Machinery: Continuous investment in R&D can give Mamata Machinery a competitive edge.
Should You Apply?
Investors seeking long-term growth should consider applying for the Mamata Machinery IPO. The company’s robust financials, industry-leading position, and experienced management team make it a promising investment. The attractive price band and low debt-to-equity ratio further enhance its appeal.
How to Apply for the IPO
Investors can apply for the Mamata Machinery IPO using:
- ASBA (Application Supported by Blocked Amount): Via your bank account.
- UPI (Unified Payment Interface): Through stock brokers or trading platforms.
- Offline Application: By filling out physical forms available with brokers.
What is the Mamata Machinery IPO?
The Mamata Machinery IPO is a main-board IPO offering equity shares to raise approximately ₹179.39 crores. It includes a fresh issue and an offer for sale (OFS) of up to 73,82,340 equity shares.
What are the Mamata Machinery IPO opening and closing dates?
The IPO opens for subscription on December 19, 2024, and closes on December 23, 2024.
What is the price band for the Mamata Machinery IPO?
The price band has been set at ₹230 to ₹243 per share.
What is the face value of the shares?
The face value of each equity share is ₹10.
What is the market lot size for retail investors?
The minimum market lot size is 61 shares, amounting to ₹14,823. Retail investors can apply for up to 13 lots (793 shares).
How can I apply for the Mamata Machinery IPO?
You can apply through:
ASBA (Application Supported by Blocked Amount): Via your bank account.
UPI: Through stock brokers or trading platforms.
Offline: By filling out a physical form from brokers.
What is the allocation percentage for retail investors?
The retail quota is 35% of the total issue size.
When will the IPO allotment be finalized?
The allotment date is December 24, 2024.
When will refunds be initiated for unsuccessful applicants?
Refunds will be initiated on December 26, 2024.
When will the shares be credited to my Demat account?
The shares will be credited to Demat accounts by December 26, 2024.
When is the Mamata Machinery IPO listing date?
The IPO is scheduled to list on the BSE and NSE on December 27, 2024.
What is the financial performance of Mamata Machinery?
For FY2024, the company reported a revenue of ₹241.31 crores and a profit of ₹36.13 crores, reflecting strong growth compared to previous years.
Is the IPO worth applying for?
Mamata Machinery has shown consistent financial growth, a low debt-to-equity ratio, and a promising market presence, making it a good option for long-term investors.
Who are the lead managers for the IPO?
The lead manager for this IPO is Beeline Capital Advisors Private Limited.
Who is the registrar for the Mamata Machinery IPO?
The registrar for the IPO is Link Intime India Private Limited, responsible for allotments and refunds.
How does Mamata Machinery compare to its peers?
Mamata Machinery shows strong financial metrics, such as EPS of ₹14.65 and RoNW of 27.39%, outperforming some of its competitors like Rajoo Engineers and Windsor Machines.
Are there any risks involved in applying for this IPO?
Yes, potential risks include market volatility, competition, and dependency on the FMCG, food, and beverage sectors.
What are the growth opportunities for Mamata Machinery?
The company is positioned to benefit from rising global demand for flexible packaging solutions and ongoing innovation in machinery.
