Mamata Machinery share price locked in 5% upper circuit after bumper listing on the bourses. Buy, sell or hold?

Mamata Machinery share price made a remarkable debut on the stock exchanges today. The shares opened at ₹600 each on both the NSE and BSE, reflecting an increase of 146.91% over the issue price of ₹243. 

Following this strong opening, the stock hit the 5% upper circuit limit on the exchanges. Mamata Machinery share price today was trading at ₹629.95 on BSE and ₹630 on NSE as of 11.25 am.

The initial public offering (IPO) of Mamata Machinery, which specialises in manufacturing packaging machinery, was subscribed 194.95 times on the final day of the share sale on Monday. The segment reserved for Non-Institutional Investors experienced an extraordinary subscription rate of 274.38 times, while Qualified Institutional Buyers (QIBs) segment was subscribed 235.88 times. The portion allocated for Retail Individual Investors (RIIs) achieved a subscription rate of 138.08 times.

This ₹179-crore IPO was priced in the range of ₹230 and ₹243 per share. Ahead of the share sale, Mamata Machinery announced that it raised over ₹53 crore from its anchor investors. The company offers comprehensive manufacturing solutions for the packaging industry and markets its products under the brand names 'Vega' and 'Win', delivering a wide range of offerings that support the entire flexible packaging market value chain.

The IPO was solely an offer for sale (OFS), featuring up to 7.38 million shares from both promoters and existing shareholders. The company's promoters comprise Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagvati Patel, along with Mamata Group Corporate Services.

Mamata Machinery share price outlook

Shivani Nyati, who leads the Wealth division at Swastika Investmart, mentioned that the IPO’s attractive valuation adds to its appeal. The company had an impressive stock market launch, debuting at a notable 147% premium over its issue price of ₹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,” advised Nyati.

Additionally, Prathamesh Masdekar, a Research Analyst at StoxBox, noted that Mamata Machinery garnered significant interest from investors, with its IPO being oversubscribed by 194.95 times.

The company is strategically focused on enhancing relationships with current customers and broadening its product range across different regions to foster growth. To attract new customers and seize emerging opportunities within its product lines, the company plans to develop offerings that align with customer preferences, Masdekar said.

“By improving capacity utilisation and boosting production volumes, the company aims to satisfy rising customer demand while enhancing productivity and lowering costs. Consequently, we advise that investors who received shares maintain their holdings from a medium to long-term viewpoint,” he added.

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