Mamata Machinery IPO: Price, GMP, Allotment & Listing Date

Mamata Machinery IPO - Complete Overview 

Mamata Machinery IPO a Mainboard IPO is a book-built issue of Rs.179.39 Cr (0.74 Cr Shares) by Mamata Machinery Limited which was founded in April 1979. The company manufactures and exports machines for making plastic bags, pouches, packaging, and extrusion equipment. The company aids in solution manufacturing in the packaging industry.

It serves the FMCG, Food, & Beverage industries. 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, N. N. Print & Pack Pvt Limited, V3 Polyplast Pvt Limited, Laxmi Snacks Private Limited, Ganges Jute Private Limited, Dhalumal Packaging Industries LLC, Western India Cashew Company Private Limited, as well as Gits Food Products Private Limited and Emirates National Factory for Plastic Ind LLC.

As of May 31, 2024, it has exported machines to more than 75 countries. The company has offices in Bradenton, Florida, and Montgomery, Illinois, as well as sales agents in over five other countries across Europe, South Africa, and Asia. 

The company maintains two machine manufacturing facilities, one located in India and the other in the USA.

This new IPO is to be launched on 19 December 2024, and the initial public offering of this upcoming IPO will end on 23 December 2024.

Detailed Video

Mamata Machinery IPO Details

The Rs.179.39 crore Mamata IPO comprises a wholly offer for sale (OFS) of 0.74 Cr Shares. The IPO listing date is on December 27, 2024. Mamata Machinery IPO price is Rs.230 to Rs.243.

If you want to apply for the IPO, Click Here  to open a Demat Account.

Company Financial

The company’s revenue grew by 14.84% and PAT increased by 60.52% between FYs ended 31 Mar 2024 - 31 Mar 2023.
(Amount in Crore)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Product-wise Revenue Bifurcation

(Amount in millions)

 

Geography-wise Revenue Bifurcation

(Amount in millions)

 

The Objective of the Issue

None of the revenues from the offer (the “Offer Proceeds”) will go to the company; instead, All of the offer proceeds will go to the selling shareholders once offer-related costs have been deducted.

Peers of Mamata Machinery Limited

 

Evaluation

The Mamata Machinery Limited IPO price band is between Rs.230 to Rs.243 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.14.65 from the last year, the resulting P/E ratio is 16.59x. 
Considering the weighted EPS of Rs.10.39 for the last three years, the P/E ratio is 23.39x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 43.90x.

 

In simple words, the P/E ratio of this IPO (16.59x), compared with the industry’s average P/E of 43.90x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths    

• An important company providing machines and equipment for bag and pouch making, packaging, and co-extrusion blown film machinery and attachments.

• Advanced manufacturing tools and understanding of materials to configure systems and products according to customers' specifications.

• Businesses that are focused on the needs of the customer and have a vast worldwide sales and distribution network.

• Prominent Management Team.

 

IPO’s Weaknesses 

• Nonexistence of Established Market for Equity Shares: The public issue of equity shares has been the first formal market for the company. No assurance of trading of shares at all, nor can the company predict the price of its shares post-listing.

• Entire Loss Risk of Investment: Investments in equity and equity-related securities have the inbuilt risk from which no loss of investment is likely. Investors are better advised to rely on self-examination.

• Risks Associated with the Overall Economy and the Market: Changes in economic conditions, in the market, or in the industry itself will hurt the company both in terms of performance and share price.

• Dependency upon Key Management: The future performance of the company shall heavily depend on the key management personnel. Adverse impact operations may face a loss of skilled personnel or failure to attract the same.

• Compliance and Legal Risks: Non-compliance or involvement in legal squabbles would severely hurt the company's financial as well as reputational bottom lines.

• These risks paint a very broad picture of the possible risks spelled out in the company's red herring prospectus. 

 

Mamata Machinery IPO GMP

Mamata Machinery IPO GMP today is Rs.60 as of 13 December 2024. With the price of Rs.243, the estimated listing price is Rs.303 while writing this information.

Mamata Machinery Limited IPO Timetable (Tentative)

The IPO date is from 19 December to 23 December, with IPO allotment on 24 December, and refund initiation on 26 December. The IPO listing date is on 27 December 2024.

IPO Other Details 

With a face value of Rs.10 per Share, Mamata Machinery IPO size is 7,382,340 Shares (Rs.179.39 Cr) and it will be listed at BSE and NSE.

Mamata Machinery IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (61 Shares) amounting to Rs.14,823 and 13 Lots (793 Shares) amounting to Rs.1,92,699 respectively, while for HNI investors, the minimum Lot is 14 (854 Shares) amounting to Rs.2,07,522.

IPO Reservation

Promoters and Management of Mamata Machinery Ltd. 

• Mahendra Patel

• Chandrakant Patel

• Nayana Patel

• Bhagvati Patel

• Mamata Group Corporate Services LLP

• Mamata Management Services LLP.
  
  

IPO Lead Managers

Beeline Capital Advisors Pvt Ltd.

Dividend Policy

A Dividend of Rs.0.50 per equity share was paid out by the company from 01 July 2024 till the filing of the RHP & in FY24 and Rs.5 in FY23.

Conclusion

The Mamata Machinery IPO is a tempting investment prospect, considering its stronghold in the packaging machinery industry and robust earning growth over time. The market valuation is strikingly lower compared to peer group companies in P/E terms. However, that calls for investor caution with the underlying risks concerning critical management dependencies and market uncertainties.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here  to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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