Mamata Machinery Limited has launched its IPO, opening for subscription from December 19, 2024, to December 23, 2024. The IPO comprises an offer for sale worth ₹179.39 crore. The price band is set between ₹230 and ₹243 per share, and the company will list its shares on the BSE and NSE, with a tentative listing date of December 27, 2024.
Key IPO Highlights
- IPO Size: ₹179.39 crore
- Price Band: ₹230-243 per share
- Minimum Lot Size: 61 shares
- Retail Investment: ₹14,823 minimum
- Listing Date: December 27, 2024
- Promoter Holding Pre-IPO: 92.45%
- Registrar: Link Intime India Private Limited
Business Overview
Incorporated in 1979, Mamata Machinery Limited is a global leader in manufacturing and exporting packaging, plastic bag, pouch-making machines, and extrusion equipment. Its products cater to industries such as FMCG, food, and beverages. The company boasts a global presence, with machines exported to over 75 countries and two manufacturing units located in India and the USA.
Key customers include prominent names like Balaji Wafers, Dass Polymers, and Emirates National Factory for Plastic Ind LLC.
Financial Performance
For the fiscal year 2024, Mamata Machinery reported:
- Revenue from Operations: ₹2,366.11 million
- Net Profit: ₹361.21 million
- EPS: ₹14.65
Despite a dip in Q1 FY25 earnings, Bajaj Broking highlights that Mamata Machinery traditionally experiences a lean first half, with performance picking up in the latter half of the fiscal year.
Valuation and Outlook
Bajaj Broking recommends subscribing to the IPO with a long-term perspective, citing the company’s niche in innovative manufacturing, steady financial growth, and global footprint. The issue appears reasonably priced based on FY24 earnings.
Key Strengths:
- Established global presence with advanced manufacturing facilities.
- Expertise in sustainable and innovative packaging solutions.
- Strong clientele across multiple industries.
Key Risks:
- Heavy reliance on top 10 customers, accounting for 29.19% of revenue.
- Exposure to volatile raw material prices, impacting margins.
Grey Market Premium (GMP)
As of December 19, 2024, the GMP is ₹200, suggesting an estimated listing price of ₹443 per share, reflecting an 82.3% premium to the cap price.
Bajaj Broking’s Recommendation
Bajaj Broking views Mamata Machinery as a promising investment opportunity for medium to long-term investors. The company’s strategic focus on innovation and global expansion positions it well for future growth.
