Mamata Machinery IPO Day 2 Highlights: Issue subscribed 37.34x on 2nd day; GMP signals over 100% listing pop

Mamata Machinery IPO was subscribed 37.34 times at the end of the bidding process on the second day of the IPO. Here's how different quotas were subscribed:

QIB: 4.74x

NII: 49.45x

Retail: 50.55x

Employee: 53.97x

Fifty percent (50%) of the equity shares allotted to anchor investors in the anchor investor portion shall be locked in for a period of 30 days from the date of allotment, and the remaining fifty percent (50%) of the equity shares allotted to the anchor investors shall be locked in for 90 days from the date of allotment.

Mamata Machinery IPO was subscribed 34.09x on the second day of the IPO. Here's how different quotas were subscribed:

QIB: 2.95x

NII: 45.26x

Retail: 46.88x

Employee: 49.16x

Beeline Capital Advisors is the book-running lead manager of the issue while Link Intime India is the registrar.

The Promoters of the company are Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP. 

As of the date of this Red Herring Prospectus, Promoters, in aggregate, held 22,749,820 Equity Shares in our Company, representing 92.45% of the issued, subscribed, and paid-up Equity Share capital of our Company.

Total expenses, which primarily included cost of raw material and components consumed, changes in inventories of finished goods and work-in-progress, employee benefit expense, finance expenses, depreciation and amortization expenses, and other expenses, increased by 8.73% from ₹1,670.30 million in Fiscal 2022 to ₹1,816.08 million in Fiscal 2023.

Mamata Machinery IPO was subscribed 29.45x on the second day of the IPO. Here's how different quotas were subscribed:

QIB: 2.81x

NII: 36.02x

Retail: 41.64x

Employee: 46.05x

1. Leverage our industry-leading capabilities by continuing to diversify our customer base and increase penetration in new geographies

2. Continue to innovate across product categories, catering to wider end applications

3. Reduce operating costs and improve operational efficiencies

Currently, the Indian packaging sector is dominated by the rigid packaging segment. However, the penetration of flexible packaging materials is increasing steadily. As per industry sources, the market size of the global packaging machinery market was estimated to be valued at USD 46.8 billion in 2022, which is slated to grow to USD 60.8 billion by 2028, witnessing a 4.5% CAGR increase between 2022-28.

The export of packaging machinery has displayed a remarkable trajectory over the given years. In FY 2019, the export value stood at INR 13.9 billion, and by FY 2023, it reached an impressive INR 23.8 billion. The CAGR over this period stands at a remarkable 14%, indicative of sustained and substantial growth. The flexibility in transportation and storage, along with superior barrier properties, is helping in the growth of flexible packaging materials. With the demand for products like packaged food and personal care products increasing, the usage of flexible packaging materials – which is the preferred packaging material in the food & beverage industry – would increase.

• Among the leading exporters of machinery and equipment for converting machinery, packaging machinery, co-extrusion blown film machinery, and attachments;
• Advanced manufacturing infrastructure and material knowledge to customize systems and products based on customer specifications;
• Technology-driven operations with a strong focus on quality, innovation-led research and development, leading to products that cater to dynamic market requirements;
• Customer-centric operations, with an extensive global sales and distribution network;
• Skilled and experienced management team with a committed employee base.

Mamata Machinery's listed peers include Rajoo Engineers, Windsor Machines, and Kabra Extrusion Technik. Rajoo Engineers has a price-to-earnings (P/E) ratio of 57.16, while Kabra Extrusion Technik's P/E stands at 30.64. Windsor Machines has a negative P/E, and Mamata Machinery's P/E is 16.58.

Mamata Machinery subscribed 25.66 times so far on the 2nd day of the bidding process. QIB portion was subscribed 2.81 times, NII portion 31.12 times, retail portion 36.16 times and employee quota 40.92 times.

The company was incorporated as ‘Patel Machinery Private Limited’, a private limited company under the Companies Act, 1956. Pursuant to a special resolution passed by the shareholders of our company on September 19, 1988, the name of our company was changed to Mamata Machinery Private Limited. Subsequently, the company was converted into a public limited company, pursuant to a special resolution passed by the shareholders of our company on June 5, 2024. The name of the company was changed to Mamata Machinery Limited.

The objectives of the offer are:

(i) to carry out the Offer for Sale of up to 7,382,340 Equity Shares by the Selling Shareholders, and 

(ii) to achieve the benefits of listing the Equity Shares on the Stock Exchanges.

The company will not receive any proceeds from the Offer, and all such proceeds will go to the Selling Shareholders.

• The company derives a significant portion of its revenue from top ten customers, which represented an average of 30.76% of revenue for the previous three fiscals. The loss of any of these customers or a reduction in purchases by any of them could adversely affect the business, results of operations, and financial condition.
• The majority of the business comes from exports. The revenue from operations from sales located outside India represented 70.42%, 65.28%, 71.52%, and 66.13% for the three-month period ended June 30, 2024, and for Fiscal 2024, Fiscal 2023, and Fiscal 2022, respectively. Any disruptions in the export business could adversely affect the company's business, financial condition, cash flows, and results of operations.
• The company is heavily dependent on the performance of the FMCG, Food & Beverage, and Consumer Industry. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the plastic processing and converting and packaging machines market can adversely impact the business, financial condition, results of operations, cash flows, and prospects.

Mamata Machinery IPO was booked 20.33 times so far on 2nd day. Here's how different quotas were subscribed:

QIB: 1.51x

NII: 24.50x

Retail: 29.11x

Employee: 33.77x

Its 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, Emirates National Factory for Plastic Ind LLC, Dhwani Polyprints Private Limited, Kamakshi Suedpack Private Limited, Bansal Industries, and Hershey India Private Limited.

The Mamata Machinery IPO is a book-built issue worth ₹179.39 crore. It consists entirely of an offer to sell 0.74 crore shares. This means no money raised from the IPO will go to the company, but to the selling shareholders. 

Mamata Machinery IPO GMP today was ₹260. This means shares of Mamata Machinery are trading ₹260 higher than their upper price band of ₹243 at ₹503, suggesting a premium of 107%.

Mamata Machinery IPO Live: The public issue of Mamata Machinery was subscribed 16.48x on the first day. Investors subscribed for 8,53,22,530 shares, compared to 51,78,227 shares on offer. 

The Retail investors subscribed 23.84x the shares on offer, followed by the Non-Institutional Investors (NIIs) at 18.87x. The Qualified Institutional Buyers (QIBs) subscribed 1.51x the shares available. 

Mamata Machinery IPO Live: The public issue of Mamata Machinery has received 16.09x subscription on the first day of public bidding. All three segments of investors have subscribed to the IPO, coming in at a total of 8,32,96,110 shares, compared to the 51,78,227 shares on offer.

Mamata Machinery IPO Live: The Qualified Institutional Buyers (QIBs) portion of the public issue has been fully subscribed so far at 1.51 times the share available, as of 4:45 p.m. on the first day of public bidding. 

Mamata Machinery IPO Live: The public issue of Mamata Machinery has received 14.08 times the subscription compared to the shares available. 

All three segments of investors in total have subscribed 7,28,87,436 shares, compared to the 51,78,227 shares on offer. The retail investors lead the bidding round on Day 1, coming in at 21.65x, followed by the Non Institutional Investors (NIIs) at 14.73x. The Qualified Institutional Buyers (QIBs) segment was subscribed 0.09 per cent of the shares available. 

Mamata Machinery IPO Live: As of December 19, the grey market premium (GMP) of the Mamata Machinery public issue stands at ₹200. With the upper price band at ₹243, the issue is expected to be listed at ₹443 per share, a premium of 82.3%, according to Investorgain.com. 

Gey market premium (GMP) is the investors' willingness to pay more for a public issue. 

Mamata Machinery IPO Live: Mamata Machinery IPO has been subscribed 12.43 times so far. The public issue received bids for 6.43 crore equity shares as against 51.78 lakh shares on the offer, as per NSE data till 3:00 PM. The IPO has been subscribed 19.27 times in the retail category, and 12.69 times in the Non Institutional Investors (NII) category so far. The Employee portion is booked 22.54 times, while the Qualified Institutional Buyers’ (QIBs) segment is subscribed 1% so far.

Mamata Machinery IPO Live: A look at key details of Mamata Machinery IPO 

Mamata Machinery IPO Live: Mamata Machinery IPO has been subscribed 10.81 times so far. The public issue received bids for 5.59 crore equity shares as against 51.78 lakh shares on the offer, as per NSE data till 2:15 PM. The IPO has been subscribed 16.89 times in the retail category, and 10.74 times in the Non Institutional Investors (NII) category so far. The Employee portion is booked 20.37 times, while the Qualified Institutional Buyers’ (QIBs) segment is subscribed 1% so far.

Mamata Machinery IPO Live: Mamata Machinery shares are showing a bullish trend in the unlisted market with a stellar grey market premium (GMP). On the first day of the bidding period, Mamata Machinery IPO GMP today is ₹201 per share, according to stock market observers. This indicates that Mamata Machinery shares are trading at ₹444 apiece in the grey market, a premium of 83% to the IPO price of ₹243 per share.

Mamata Machinery IPO Live: Mamata Machinery IPO has been subscribed 9.12 times so far. The public issue received bids for 4.72 crore equity shares as against 51.78 lakh shares on the offer, as per NSE data till 1:30 PM. The IPO has been subscribed 14.42 times in the retail category, and 8.61 times in the Non Institutional Investors (NII) category so far. The Employee portion is booked 18.17 times, while the Qualified Institutional Buyers’ (QIBs) segment is subscribed 1% so far.

Mamata Machinery IPO Live: At the upper price band, Mamata Machinery is valued at P/E of 16.6x with a market cap of ₹5,979 million post issue of equity shares and return on net worth of 27.4% based on FY24. On the valuation front, we believe that the company is fairly priced compared to their peers. Therefore, we recommend a “Subscribe” rating to the IPO, said brokerage firm Anand Rathi.

Mamata Machinery IPO Live: Mamata Machinery IPO has been subscribed 7.15 times so far. The public issue received bids for 3.7 crore equity shares as against 51.78 lakh shares on the offer, as per NSE data till 12:40 PM. The IPO has been subscribed 11.32 times in the retail category, and 6.68 times in the Non Institutional Investors (NII) category so far. The Employee portion is booked 15.11 times, while the Qualified Institutional Buyers’ (QIBs) segment is subscribed 1% so far.

Mamata Machinery IPO Live: On valuation parse at the upper price band of ₹243, the issue is asking for Market cap of ₹598 crore. Based on annualized FY2025 earnings and fully diluted post-IPO paid-up capital, the company is asking for PE of 14.65x which looks reasonable considering the long term outlook. Investors should also look at IPO offers which come with 100% OFS i.e ₹179.39 crore issue which is an area of concern for new investors. As industries increasingly shift toward automation and flexible packaging solutions, Mamata’s strong customer relationships, extensive global distribution network and emphasis on after-sales services enable repeat business and foster brand trust, we believe well-positioned to capitalize on this growth, said Rajan Shinde, Research Analyst, Mehta Equities Ltd.

Mamata Machinery IPO Live: Mamata Machinery had raised ₹53.55 crore from anchor investors on December 18, ahead of its public issue opening today. The company has allocated 22,04,113 equity shares to the anchor investors at an allocation price of ₹243 per share. The anchor investor pool for the Mamata Machinery public issue comprises 3P India Equity Fund, Authum Investment and Infrastructure, Winro Commercial India, Subhkam Ventures, Chartered Finance and Leasing, Belgrave Investment Fund, and Aarth AIF. 

Mamata Machinery IPO Live: Mamata Machinery IPO has been subscribed 3.01 times so far. The public issue received bids for 1.55 crore equity shares as against 51.78 lakh shares on the offer, as per NSE data till 11:05 AM. The IPO has been subscribed 4.81 times in the retail category, and 2.68 times in the Non Institutional Investors (NII) category so far. The Employee portion is booked 7.25 times, while the Qualified Institutional Buyers (QIBs) are yet to bid for Mamata Machinery IPO.

Mamata Machinery IPO Live: Mamata Machinery shares are showing a bullish trend in the unlisted market with a stellar grey market premium. Mamata Machinery IPO GMP today is ₹201 per share. This indicates that Mamata Machinery shares are trading at ₹444 apiece in the grey market, a premium of 83% to the IPO price of ₹243 per share.

Mamata Machinery IPO Live: Mamata Machinery IPO has been fully subscribed within minutes of opening. The public issue has been booked 1.47 times so far. The public issue received bids for 76.22 lakh equity shares as against 51.78 lakh shares on the offer, as per NSE data till 10:36 AM. The IPO has been subscribed 2.29 times in the retail category, and 1.47 times in the Non Institutional Investors (NII) category so far. The Employee portion is booked 3.38 times, while the Qualified Institutional Buyers (QIBs) are yet to bid for Mamata Machinery IPO.

Mamata Machinery IPO Live: Mamata Machinery IPO has been subscribed 92% within half hour of opening. The public issue received bids for 47.64 lakh equity shares as against 51.78 lakh shares on the offer, as per NSE data till 10:30 AM. The IPO has been subscribed 1.35 times in the retail category, and 1.10 times in the Non Institutional Investors (NII) category so far. The Qualified Institutional Buyers (QIBs) are yet to bid for Mamata Machinery IPO.

Mamata Machinery IPO Live: At the upper-end of the price band, the company aims to raise ₹179.39 crore from the book-built issue which is entirely an offer-for-sale (OFS) of 73.82 lakh equity shares.

Mamata Machinery IPO Live: Beeline Capital Advisors Pvt Ltd is the book running lead manager of the Mamata Machinery IPO, while Link Intime India Private Ltd is the IPO registrar.

Mamata Machinery IPO Live: Mamata Machinery IPO price band has been set at ₹230 to ₹243 per share and the IPO lot size is 61 shares. The minimum investment amount required by retail investors is ₹14,823.

Mamata Machinery IPO Live: Mamata Machinery IPO allotment is expected to be finalized on Tuesday, December 24. The company is likely to credit the equity shares into the demat accounts of the eligible allottees on December 26 and initiate refunds onto unsuccessful bidders on the same day. Mamata Machinery IPO listing date is likely December 27. The equity shares of Mamata Machinery will be listed on BSE and NSE.

Mamata Machinery IPO Live: The initial public offering (IPO) of plastic packaging maker Mamata Machinery Ltd is set to hit Dalal Street Street. The bidding for Mamata Machinery IPO commences today, December 19 and will conclude on December 23.