Mamata Machinery Limited IPO Details and Analysis

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Mamata Machinery Limited IPO Details and Analysis

Mamata Machinery IPO is a book built issue of Rs 179.39 crores. The issue is entirely an offer for sale of 0.74 crore shares.

December 19th, 2024 IPO

Mamata Machinery Limited has announced its Initial Public Offering (IPO), a book-built issue of Rs. 179.39 crores. Below are the details and insights into this IPO.

IPO Overview

IPO Details

IPO Date: December 19, 2024, to December 23, 2024
Listing Date: December 27, 2024
Face Value: ₹10 per share
Price Band: ₹230 to ₹243 per share
Lot Size: 61 Shares
Total Issue Size: 73,82,340 shares (aggregating to ₹179.39 crores)
Offer for Sale: Entire issue (73,82,340 shares of ₹10 each aggregating ₹179.39 crores)
Issue Type: Book Built Issue IPO
Listing At: BSE, NSE

IPO Reservation

QIB Shares Offered: Not more than 50% of the Net Issue
Retail Shares Offered: Not less than 35% of the Net Issue
NII (HNI) Shares Offered: Not more than 15% of the Net Issue

Anchor Investors

Anchor Bid Date: December 18, 2024
Shares Offered: 22,04,202
Anchor Portion Size: ₹53.56 crores
Lock-in Period for 50% Shares: Ends January 23, 2025
Lock-in Period for Remaining Shares: Ends March 24, 2025

About Mamata Machinery Limited

Incorporated in April 1979, Mamata Machinery Limited specializes in manufacturing and exporting machinery for making plastic bags, pouches, packaging, and extrusion equipment. The company caters to various industries, including FMCG, Food, and Beverage sectors. It boasts a global presence with exports to over 75 countries and international offices in Florida and Illinois, along with a strong distribution network in Europe, South Africa, and Asia.

Competitive Strengths

Expertise in advanced manufacturing for packaging and extrusion machinery.
A customer-centric approach with customized solutions.
Extensive global distribution network.
Experienced management and a skilled engineering team.

Promoter Holding

Pre-Issue: 92.45%
Post-Issue: Not applicable, as this is entirely an Offer for Sale.

Financial Performance

Mamata Machinery Limited has shown consistent growth in revenue and profit. Below is the financial summary:

Period Ended	30 Jun 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ Cr)	240.85	237.49	228.47	216.33
Revenue (₹ Cr)	29.19	241.31	210.13	196.57
Profit After Tax (₹ Cr)	0.22	36.13	22.51	21.70
Net Worth (₹ Cr)	132.82	131.88	127.38	103.56
Total Borrowing (₹ Cr)	4.34	11.60	18.63	20.86

Key Performance Indicators (KPI)

KPI	Value
Return on Equity (ROE)	27.76%
Return on Capital Employed (ROCE)	31.29%
Debt/Equity Ratio	0.09
Return on Net Worth (RoNW)	27.39%
PAT Margin	15.27%

Objects of the Issue

This IPO is entirely an Offer for Sale, and the proceeds will be received by the selling shareholders post-deduction of offer-related expenses.

IPO Timeline (Tentative)

Event	Date
IPO Open Date	December 19, 2024
IPO Close Date	December 23, 2024
Basis of Allotment	December 24, 2024
Initiation of Refunds	December 26, 2024
Credit of Shares to Demat	December 26, 2024
Listing Date	December 27, 2024

Lot Size and Investment

Category	Lots	Shares	Amount (₹)
Retail (Min)	1	61	14,823
Retail (Max)	13	793	1,92,699
S-HNI (Min)	14	854	2,07,522
S-HNI (Max)	67	4,087	9,93,141
B-HNI (Min)	68	4,148	10,07,964

Conclusion

Mamata Machinery Limited’s IPO offers a significant opportunity for investors, especially given the company’s established global presence and strong financial growth. Retail investors can participate with a minimum investment of ₹14,823, while anchor investors have already shown confidence by contributing ₹53.56 crores. Investors should carefully assess the price band and the company’s financials before making investment decisions.