Mamata Machinery, a prominent player in the manufacturing sector is set to launch its Initial Public Offering (IPO) to the public, marking a significant milestone in its growth journey. Known for its expertise in providing high-quality machinery and solutions across various industries, Mamata Machinery aims to leverage the IPO to fuel its expansion plans, enhance operational capabilities and increase market presence.
This move comes at a time when the company has successfully established itself in a competitive market, positioning itself to attract investor interest with its strong financials, promising growth prospects and innovative approach. Investors looking for opportunities in the machinery and industrial sector will find Mamata Machinery’s IPO an intriguing prospect to consider.
In this article, we will explore the details of the Mamata Machinery IPO, including the company’s background, business model, financial performance and potential opportunities and risks for investors.
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Table of Contents
Mamata Machinery IPO Details
Mamata Machinery IPO is a book-built issue of ₹179.39 crore and it’s entirely an offer for sale (OFS), which means no proceeds from the issue will go to the company and will only be used to provide an exit to the existing shareholders of the company.
Mamata Machinery’s ₹179.39 crore IPO opens for subscription on Thursday, December 19, 2024 and will close on Monday, December 23, 2024. The allotment for Mamata Machinery IPO is expected to be finalized on Tuesday, December 24, 2024 with a tentative listing date on the stock exchanges set for Friday, December 27, 2024. The price band for Mamata Machinery shares has been fixed at ₹230 to ₹243 per share.
| IPO Name | Mamata Machinery Limited |
| IPO Open Date | 19 December 2024 |
| IPO Close Date | 23 December 2024 |
| Price Band | ₹230 to ₹243 per share |
| Lot Size | 61 shares |
| Face Value | ₹10 per share |
| Total-Issue Size | 73,82,340 shares (aggregating up to ₹179.39 Cr) |
| Offer for Sale | 73,82,340 shares of ₹10 (aggregating up to ₹179.39 Cr) |
| Employee Discount | ₹12 per share |
| Share Allotment Date | 24 December 2024 |
| Initiation of Refund | 26 December 2024 |
| Credit of Shares to Demat | 26 December 2024 |
| Listing Date | 27 December 2024 |
| UPI Cut Off Time | 23 December 2024 – 5 P.M. |
| Listing Exchange Name | BSE, NSE |
| Lead Manager(s) of Issue | Beeline Capital Advisors Private Limited |
| Registrar of Issue | Link Intime India Private Limited |
For detailed information, you can refer to Mamata Machinery IPO RHP.
Mamata Machinery IPO GMP
Prior to its opening, the IPO has received a positive response in the unlisted market, where it is currently trading at a premium of approximately 46%. The latest Grey Market Premium (GMP) stands at ₹111, indicating an estimated listing price of ₹354.
Check IPO Live GMP: View now for Real-Time Updates
Mamata Machinery IPO Lot Size
Mamata Machinery Limited has issued 73,82,340 shares worth ₹179.39 crore for the offer for sale issue. The minimum lot size for an application is 1 lot (61 shares) and the minimum amount of investment required by retail investors is ₹14,823.
The minimum lot size investment for s-HNI (Small High Net Worth Individual) is 14 lots (854 shares), amounting to ₹2,07,522, while the maximum is 67 lots (4,087 shares), amounting to ₹9,93,141.
For b-HNI (Big High Net Worth Individual), the minimum lot size is 68 lots (4,148 shares) amounting to ₹10,07,964.
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Min) | 1 | 61 | ₹14,823 |
| Retail(Max) | 13 | 793 | ₹1,92,699 |
| s-HNI(Min) | 14 | 854 | ₹2,07,522 |
| s-HNI(Max) | 67 | 4,087 | ₹9,93,141 |
| b-HNI(Min) | 68 | 4,148 | ₹10,07,964 |
Mamata Machinery IPO Reservation Details
Below are the limits for the shares offered in the different investor categories for this IPO:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net Issue |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15.00% of the Net Issue |
Category Reservation Details
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII (Retail) | Up to ₹2 lakhs | Yes |
| Only s-NII | ₹2 lakhs to ₹10 lakhs | No |
| Only b-NII | ₹10 lakhs to NII Reservation Portion | No |
| Only employee | Up to ₹5 lakhs | Yes |
| Employee + RII/NII | Employee limit: Up to ₹5 lakhs (In certain cases, employees are given a discount if the bidding amount is up to ₹2 lakhs) If applying as RII: Up to ₹2 lakhs If applying as NII: sNII > ₹2 lakhs and up to ₹10 lakhs and bNII > ₹10 lakhs | Yes for shareholder/RII |
Mamata Machinery IPO Anchor Investors Details
Mamata Machinery raised ₹53.56 crore from anchor investors. The bid date for anchor investors in the Mamata Machinery IPO was December 18, 2024.
| Bid Date | December 18, 2024 |
| Shares Offered | 22,04,202 |
| Anchor Portion Size (In Cr.) | 53.56 |
| Anchor lock-in period end date for 50% shares (30 Days) | January 23, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | March 24, 2025 |
About the Company
That concludes the details of this IPO. Now, let’s shift our focus to explore more about the company’s background, operations, strengths and risks, financial statements, and key highlights.
Incorporated in April 1979, Mamata Machinery Limited is a manufacturer and exporter of plastic bag and pouch-making machines, packaging machinery and extrusion equipment. The company provides manufacturing solutions for the packaging industry. The company caters to the FMCG and Food & Beverage industries. The company’s machinery is also utilized in other areas such as e-commerce packaging and garment bag production.
The company’s machines are sold under the brand names “Vega” and “Win“. As of September 30, 2024, the company has installed over 4,500 machines. Mamata Machinery’s product portfolio includes bag and pouch-making machines such as bottom seal bag makers, universal machines, servo wicketers, centre seal, three-side seal pouch makers, stand-up zipper, in-line spout makers, Vega Plus systems and flat-bottom pouch-making systems. In the packaging machinery segment, the company provides horizontal form fill seal (HFFS) machines, pick-fill-seal (PFS) machines, multi-lane sachet packaging machines and vertical form fill seal (VFFS) machines. Additionally, the company manufactures co-extrusion blown film machinery, which includes mono-layer and three-layer film lines, as well as advanced five-layer and seven-layer lines.
The company’s customers include Balaji Wafers Private Limited, Dass Polymers Private Limited, Jflexy Packaging Private Limited, Euphoria Packaging Private Limited, Sunrise Packaging, Om Flex India, Chitale Foods, V3 Polyplast Private Limited, Dhalumal Packaging Industries LLC, Laxmi Snacks Private Limited, Ganges Jute Private Limited, Western India Cashew Company Private Limited, N. N. Print & Pack Private Limited, Gits Food Products Private Limited and Emirates National Factory for Plastic Ind LLC.
As of May 31, 2024, the company has exported machines to over 75 countries. The company has international offices in Bradenton, Florida and Montgomery, Illinois, as well as sales agents in over five countries across Europe, South Africa and Asia. The company has two machine manufacturing facilities, one in India and other in the USA. As of the same date, the company employs 87 skilled engineers and application experts in electronics, mechanics, software and design.
Competitive Strengths:
- A major exporter of machinery and equipment for bag and pouch making, packaging, co-extrusion blown film machinery and attachments.
- Advanced manufacturing tools and material knowledge to customize systems and products based on customers’ needs.
- Customer-centric operations with an extensive global sales and distribution network.
- Experienced Management Team.
Objectives of Mamata Machinery IPO
Since the IPO is entirely an offer for sale issue, therefore the company will not receive any proceeds from the Offer (referred to as the “Offer Proceeds”). All Offer Proceeds, after deducting offer-related expenses, will be received by the selling shareholders, who will bear these expenses.
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Mamata Machinery Limited Financial Information (Restated)
Mamata Machinery Limited’s revenue increased by 14.84% and profit after tax (PAT) rose by 60.52% in the FY 2023-24 (April 1, 2023 to March 31, 2024).
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 Jun 2024 |
| Assets | 216.33 | 228.47 | 237.49 | 240.85 |
| Revenue | 196.57 | 210.13 | 241.31 | 29.19 |
| Profit after Tax | 21.70 | 22.51 | 36.13 | 0.22 |
| Net Worth | 103.56 | 127.38 | 131.88 | 132.82 |
| Total Debt | 20.86 | 18.63 | 11.60 | 4.34 |
| Amt in ₹ Crore | ||||
Key Performance Indicators
Mamata Machinery Limited has a market capitalization of ₹598 crore. As of March 31, 2024, the company’s key performance indicators (KPIs) include an impressive Return on Capital Employed (ROCE) of 31.29% and profit after tax (PAT) margin of 15.27%.
| Key Performance Indicators | Value |
|---|---|
| ROE | 27.76% |
| ROCE | 31.29% |
| Debt/Equity | 0.09 |
| RoNW | 27.39% |
| PAT Margin (%) | 15.27 |
The PE ratios before and after the Mamata Machinery IPO issue are detailed in the list below:
| Ratios | Pre IPO | Post IPO |
| P/E (x) | 16.59 |
- The Pre-IPO EPS is calculated based on the pre-issue shareholding as of the RHP date and the latest FY earnings available in the RHP, as of March 31, 2024.
- The Post-IPO EPS is calculated based on the post-issue shareholding and annualized FY earnings as of June 30, 2024, as provided in the RHP.
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Mamata Machinery IPO Review (Apply)
The review of Mamata Machinery IPO has been done based on the following points:
- Revenue Growth: The company’s financial growth paints a robust picture. Revenue steadily climbed from ₹196.57 crore in FY22 to ₹241.31 crore in FY24, showcasing operational strength.
- Profit Growth: Profit after tax displayed significant improvement, growing from ₹21.70 crore in FY22 to ₹36.13 crore in FY24 marking a remarkable 66.51% rise. With a PAT margin of 15.27%, the company demonstrates strong profitability, which is notable for the manufacturing sector.
- Valuation Metrics: Pre-IPO P/E: 16.59
As per the offer document, the company has shown Rajoo Engineers, Windsor Machines and Kabra Extrusion as their listed peers. They are trading at a P/E of 165, NA and 49.4 (as of December 13, 2024) respectively. However, they are not truly comparable on an apple-to-apple basis. The average P/E ratio for the manufacturing sector is around 45x, so the IPO looks undervalued.
- Return on Capital Employed (ROCE) and Return on Net Worth (RoNW):
ROCE: 31.29% reflects the company’s capital efficiency.
RoNW: 27.39% is extremely good for long-term investors.
- GMP and IPO Price Band: With a price band of ₹230 to ₹243 and a GMP of ₹111, the market shows a great interest, suggesting a potential listing gain of around 60%.
Strengths
- Comprehensive Product Portfolio: Mamata Machinery Limited offers a wide array of machinery for the production of plastic bags, pouches, co-extrusion and packaging. Its products serve diverse industries such as FMCG, food and beverages. By meeting both domestic and international demands, the company has established a solid reputation as a customer-focused solution provider.
- Technological Leadership: Mamata Machinery’s advanced manufacturing capabilities enable customization based on specific client needs. The company’s investment in research and development ensures the integration of cutting-edge technologies into its products, maintaining a competitive edge in the market.
- Global Market Reach: The company has successfully exported its products to over 75 countries, with notable customers including Balaji Wafers, Sunrise Packaging and Emirates National Factory for Plastic. With established offices in Florida and Illinois, along with sales agents across Europe, South Africa and Asia, Mamata Machinery leverages its international presence to drive sustained growth.
- Patents for the Designs: The company has been granted four patents. The patents are for a design and method to stack bags at high speeds, a machine design and manufacturing process for flat-bottom pouches, a multi-purpose sealing module for plastic film-based bags, pouch-making machine and a cross-sealing machine.
- Experienced Management: The leadership team consisting of seasoned professionals like Mahendra Patel and Chandrakant Patel, provides strategic direction and ensures the company’s growth trajectory aligns with market demands.
Risks
Here are some of the risk factors involved in the IPO that investors should know before subscribing to the issue. These risk factors have been highlighted by the company in its Red Herring Prospectus (RHP):
- High Dependence on Top 10 clients: The company’s revenue is dependent on a few key clients. Revenue from the top 10 customers contributed ₹20.26 crore (74.64%) in the three months ending June 30, 2024, ₹57.91 crore (30.59%), ₹59.48 crore (30.00%) and ₹74.27 crore (31.69%) to the revenue from operations in FY22, FY23 and FY24 respectively. Any loss of any key customer or slowdown in purchases from them could adversely affect the company.
- High Revenue Concentrated from International Sales: A substantial portion of the revenue from operations is derived from international sales. These accounted for ₹19.45 crore (70.42%) in the three months ending June 30, 2024, ₹127.12 crore (66.13%), ₹143.66 crore (71.52%) and ₹154.46 crore (65.28%) to the revenue from operations in FY22, FY23 and FY24 respectively. Any adverse developments in the business environment of these markets could hit the company’s operations.
- Regulatory Investigations may lead to Penalties or Disruptions: The company, its subsidiaries, directors, promoters, and group companies are involved in certain legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
- Economic Sensitivity: Fluctuations in demand for packaging machinery due to global economic conditions could impact revenue.
- Regulatory Hurdles: Compliance with international trade regulations and environmental norms poses potential challenges.
- Dependency on Raw Materials: Volatility in raw material prices may affect profitability.
- Limited Fresh Capital: The IPO is an OFS, providing no direct capital infusion into the company.
All the above-mentioned risks should be considered by investors before deciding to invest in the IPO.
Opinion
Given the company’s financial growth and high listing gain potential, the IPO appears attractive and therefore can be applied for both listing gains and investment. You can go through the points mentioned below to plan accordingly:
- For Long-Term Investors: Based on the company’s performance in Q1 FY25, the issue might seem overvalued however FY24 performance suggests that the IPO is undervalued. Therefore, investors might consider holding their investments for the long term.
- For Short-Term Investors: Short-term traders or investors should pay attention to the GMP trend on the listing day for any short-term gains, which look really good as of now with around 46% return on the listing date.
The Government of India is highly focused on the manufacturing sector. So, if you believe in the manufacturing sector’s growth and the company’s ability to maintain its performance, you can consider applying for the IPO for both listing gains and investment.
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Additional Details
Promoter Holding
Mr. Mahendra Patel, Mr. Chandrakant Patel, Ms. Nayana Patel, Ms. Bhagvati Patel, Mamata Group Corporate Services LLP and Mamata Management Services LLP are the promoters of the company. Their shareholding before and after the issue is as follows:
| Pre Issue Shareholding | 92.45% |
| Post Issue Shareholding |
Mamata Machinery IPO Allotment Status: Check Now
Mamata Machinery Limited Contact Details
Address: Survey No. 423/P, Sarkhej-Bavla Road, N.H No. 8A, Moraiya, Sanand, Ahmedabad – 382213
Phone: 02717630800, 02717630801
Email: [email protected]
Website: https://www.mamata.com/
Mamata Machinery IPO Registrar Details
Registrar: Link Intime India Private Limited
Address: C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083
Phone: +91-224918 6270
Email: [email protected]
Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Disclaimer: We are not a SEBI-registered research analyst. This article is written solely for educational purposes and should not be interpreted as investment advice or recommendations. The stock market involves significant risks, so we encourage you to seek guidance from a financial advisor before making any investment decisions.
FAQs
Q1. What is Mamata Machinery IPO?
Mamata Machinery IPO is an offer for sale issue, where the company aims to raise ₹179.39 crore through this IPO.
Q2. What is the price band of Mamata Machinery IPO?
The price band of this IPO has been fixed at ₹230 to ₹243 per share. This price range presents a good opportunity for investors.
Q3. What are the important dates for Mamata Machinery IPO?
The IPO opens on 19 December 2024 and closes on 23 December 2024. The listing of shares will take place on 27 December 2024 on both NSE and BSE.
Q4. How many shares are being offered in the Mamata Machinery IPO?
A total of 73,82,340 shares are being offered in the company’s IPO. These shares are entirely part of the offer for sale issue.
Q5. What is the lot size for Mamata Machinery IPO?
The lot size of the Mamata Machinery IPO is 61 shares.
Q6. How can I apply for Mamata Machinery IPO?
You can apply for the Mamata Machinery IPO online. The application can be made via UPI and the deadline for submission is 23 December 2024.
Q7. What is the GMP of Mamata Machinery IPO?
The GMP of Mamata Machinery IPO has reached ₹111, indicating an expected listing gain of around 46%.
Q8. Who is the lead manager of Mamata Machinery IPO?
The lead manager of this IPO is Beeline Capital Advisors Private Limited.
Q9. What is the business model of Mamata Machinery?
Mamata Machinery is a manufacturing company that manufactures and exports machines for making plastic bags, pouches, packaging and extrusion equipment.
