Mamata Machinery Shares Listed on NSE and BSE: Garnered Premium of 147%

Mamata Machinery shares made a spectacular debut on December 27, listing with a significant 147% premium. The shares of Mamta Machinery opened at ₹600 on both the NSE and BSE, far surpassing its IPO price of ₹243. The ₹179-crore initial public offering (IPO) of Mamata Machinery was met with overwhelming demand, being oversubscribed by an impressive 195 times. This high demand came despite a subdued stock market in the preceding week. The IPO attracted strong interest from a wide range of investors, including retail, institutional, and high-net-worth individuals.

IPO Details and Structure

The company sold shares within a fixed price range of ₹230-243 apiece in its IPO. The offer was entirely an offer-for-sale (OFS) of 73.82 lakh equity shares by the promoters, amounting to ₹179.38 crore. Since this was an OFS, Mamata Machinery will not receive any proceeds from the public issue. Instead, all funds will be directed to the selling shareholders.

Objectives of the IPO

Mamata Machinery stated that the primary objective of its initial share sale is to gain the benefits of listing its equity shares on the stock exchanges. Additionally, the company expects that the listing will enhance its visibility, improve its brand image, provide liquidity to its shareholders, and establish a public market for its shares.

About Mamata Machinery Ltd

Incorporated in 1979, Mamata Machinery Ltd. manufactures and exports plastic bag and pouch-making machines, packaging machines, and extrusion equipment. It provides comprehensive manufacturing solutions for the packaging industry. The products produced using its machinery are widely used in packaging applications across various industries, including food and FMCG products.

Mamata Machinery primarily sells packaging machinery to direct consumer brands within the FMCG, food, and beverage industries. It also sells bag and pouch-making machines to convertors and service providers, who mainly serve the FMCG and consumer sectors. Additionally, the company’s machinery is used in non-packaging applications, such as e-commerce bags and garment packaging. For the financial year 2024 (FY24), Mamata Machinery reported a significant increase in revenue, reaching ₹237 crore, up from ₹201 crore in the previous year. The company’s profit after tax also saw notable growth, rising to ₹36.1 crore during the same period.

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