Mamata Machinery Share Price Updates: Stock ends at ₹630 apiece on NSE, 159.26% premium to IPO price

The stock ended listing day at ₹630 on NSE, a 159.26% premium to the IPO price of ₹243, and at ₹629.95 on BSE, a 159.24% premium.

As of September 30, 2024, they had a team of 87 engineers and experts specializing in electronics, mechanics, software, and design. Their commitment to innovation and technology ensures high-quality, cost-effective machines and strengthens their global market position.

They are a technology-driven company focused on quality, innovation, and new product development to meet evolving market demands. With in-house capabilities in design, software development, and electronics, they invest heavily in R&D to drive innovation and digitization. Their manufacturing facility in Sanand, Gujarat, is equipped with modern testing infrastructure and supports Industry 4.0-certified machines, enabling remote control, diagnosis, and servicing through advanced software.

As of September 30, 2024, they have a customer base in over 75 countries comprising both end customer brands and conversion players. They sell their products in India and overseas through their sales team as well as selling agents.

Mamata Machinery share price hit 5% upper circuit on the NSE, BSE post a bumper listing. At 14:3 IST, Mamata Machinery share price was trading at ₹629.95 apiece on BSE, and at ₹630 on the NSE.

As per the red herring prospectus (RHP), the company's listed peers are Rajoo Engineers Ltd (with a P/E of 57.16), Windsor Machines Ltd, and Kabra Extrusion Technik Ltd (with a P/E of 30.64).

Arun Kejriwal, the founder of Kejriwal Research and Investment Services, remarked that the launch is unprecedented, and with the stock currently hitting the upper circuit, attention should be paid to what occurs on Monday. Suggesting that individuals sell at this price to realize profits would not be appropriate. Nevertheless, the new valuations render the shares costly. They are no longer considered inexpensive.

The top 10 customers of MML contributed 30.59%, 30.00%, 31.69% and 74.64% of its revenue from operations in FY22, FY23 and FY24 and three month period ended June 30, 2024, respectively, which reflects non-dependence on a single set of customers. With this track record and wide product portfolio, they have been able to retain the existing customers and have also been able to attract new customers. 

For FY23-24, It has an EBITDA margin of 19%, a PAT margin of 15%, a return on equity (ROE) of 27%, and a return on capital employed (ROCE) of 31%. Packaging revenue grew from ₹27 crore in FY2022 to ₹41 crore in FY2023, and the company plans to expand into the Middle East and Africa for further growth. Gross margins range from 42% to 58%, with pricing higher in international markets compared to India.

Mamata Machinery share price hit 5% upper circuit on the NSE, BSE post a bumper listing. At 11:17 IST, Mamata Machinery share price was trading at ₹629.95 apiece on BSE, and at ₹630 on the NSE.

As expected Mamata Machinery listing saw strong debut, delivering more than 100% return on its issue price. Such bumper listing is justified on the back of reasonable valuations and massive response from all sets of investors with an overall subscription of 194 times.

Considering market sentiments, we recommend conservative allotted investors to book profits. While long term investors should consider to HOLD IT FOR LONG TERM despite knowing short term volatility & risk in the markets. 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.

• Significant price fluctuations, shortages, or supply delays of primary materials could adversely impact their costs, timelines, and overall financial performance.
• Any slowdown in the FMCG, Food & Beverage, and Consumer industries could negatively impact their business and financial performance.
• Failure to maintain optimal inventory levels could increase costs or lead to unfulfilled orders, impacting their business.

The FMCG sector in India expanded primarily due to consumer-driven growth and increased product prices, particularly for essential goods. In the April-June 2023 quarter, India's FMCG sector witnessed a notable growth of 7.5% by volumes, marking the highest in the past eight quarters.

• Among the leading exporter of machinery and equipment for bag and pouch making machinery, packaging machinery and co-extrusion blown film machinery and attachment.
• 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

Mamata Machinery share price hit 5% upper circuit on the NSE, BSE post a bumper listing. At 11:17 IST, Mamata Machinery share price was trading at ₹629.95 apiece on BSE, and at ₹630 on the NSE.

Company made a huge stock market debut, listing at a significant 147% premium over its issue price of Rs. 243. Those who took part in the initial public offering (IPO) may book part profit and choose to hold onto their shares while keeping a careful eye on the company's performance and the state of the market, as well as maintaining a stop loss at the 550.

Prathamesh Masdekar, a Research Analyst at StoxBox, noted that Mamata Machinery has garnered significant interest from investors, with its IPO being oversubscribed by 194.95 times and anticipated to launch at a 107% premium above the highest price band. The company is strategically focused on enhancing relationships with current customers while broadening its product range across different regions to stimulate growth. Plans are in place for the company to attract new clients and seize emerging opportunities within its product lines by creating products tailored to meet customer requirements.

Mamata Machinery share price hit 5% upper circuit on the NSE, BSE post a blockbuster listing. At 10:25 IST, Mamata Machinery share price was trading at ₹629.95 apiece on BSE, and at ₹630 on the NSE.

The clientele of the company consists of 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.

Mamata Machinery share price made a bumper debut on the bourses today. On NSE, and BSE, Mamata Machinery share price today opened at ₹600 apiece, up 146.91% than the issue price of of ₹243.

Mamata Machinery IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved up to 35,000 equity shares. A discount of ₹12 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Mamata Machinery Ltd, a manufacturer of packaging machinery, announced on Wednesday that it has secured over ₹53 crore from anchor investors prior to its initial public offering (IPO). The IPO, valued at ₹179 crore, will be open for public subscription from December 19 to 23, with shares priced between ₹230 and ₹243 each.

As stated in a circular released on the BSE's website, Mamata Machinery has issued 22.04 lakh shares to seven funds at a price of ₹243 per share, bringing the total transaction amount to ₹53.56 crore.

Mamata Machinery Ltd's initial public offering saw an incredible subscription rate of 194.95 times on the last day of the share sale on Monday.

The initial share sale, valued at ₹179 crore, recorded bids for 1,00,94,81,802 shares, compared to the 51,78,227 shares available, according to NSE data.

The Non-Institutional Investors segment experienced an astonishing subscription of 274.38 times, while the Qualified Institutional Buyers (QIBs) portion was subscribed 235.88 times.

The Retail Individual Investors (RIIs) section received a subscription rate of 138.08 times.

Prathamesh Masdekar notes that Mamata Machinery has generated significant interest from investors, with its IPO being oversubscribed by 194.95 times and anticipated to launch at a 107% premium over the upper price range. The company strategically aims to enhance relationships with its current customers and broaden its product offerings across different regions to foster growth. Mamata Machinery intends to acquire new clients and tap into emerging opportunities within its product areas by developing offerings that cater to customer demands.

Prashanth Tapse observed that despite the stock market's downturn last week, Mamata Machinery garnered an exceptional response from all types of investors on the final day, achieving an overall subscription rate of 194 times. We believe this significant interest is due to fair valuations, providing new investors with potential for substantial listing profits.

Considering the current market sentiments and the considerable subscription interest, we expect the company to launch with significant listing gains, with a strong possibility of generating nearly 100% returns on its issue price. The anticipated listing profits are justified, as we believe the company has offered some value to new investors through sensible valuations.

Shivani Nyati stated that Mamata Machinery, a prominent exporter of machinery for producing bags and pouches, is poised for a successful debut on the stock market. The IPO received an exceptional response, with subscriptions reaching an astonishing 195 times and a remarkable grey market premium (GMP) of ₹255 (105%). The company's solid global footprint, which includes a manufacturing facility in the US, along with its steady increase in revenue and profits, highlights its strong fundamentals. The IPO's attractive valuation further boosts its appeal.

Mamata Machinery IPO GMP today or Mamata Machinery IPO grey market premium is +260. This indicates Mamata Machinery share price were trading at a premium of ₹260 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Mamata Machinery share price was indicated at ₹503 apiece, which is 107% higher than the IPO price of ₹243.

Based on the grey market activities observed over the past 15 sessions, the IPO GMP shows an upward trend today, indicating a robust listing. The minimum GMP recorded is ₹75, while the maximum is ₹260, as per experts from investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.