Shares of Mamata Machinery will be listed on the stock exchanges after a big success in the primary market by subscribing 194.95 times. The company which attracted all categories of investors has fixed the issue price at INR 243, the upper end of the price range of INR 230-243.
According to market buzz, the stock is likely to double upon listing. “Given market sentiment and massive subscription demand, we expect the company to list at a strong IPO over with high probability of delivering close to 100 per cent return on the issue price,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
“We recommend that conservative allocated investors may consider booking profits above our expectations. While long-term investors should consider holding it for the long term despite being aware of short-term volatility and risk in the markets,” he advised, adding for non-allocated investors, we recommend accumulating if we experience post-listing declines due to profit booking attempts.
The Gujarat-based company hit the capital market with a public offering of Rs 179.38 crore. The IPO was entirely an offer for sale of 73.82 lakh shares by promoters Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP and Mamata Management Services LLP.
The QIB tranche was subscribed 235.88 times, while the most aggressive bidders were non-institutions at 274.38 times. The share for non-professional investors was bid for 138.08 times and the employees 153.27 times.
The manufacturer of packaging machines raised over SEK 53 million from anchor investors as part of the IPO. Mamata Machinery has allotted 22.04 lakh shares to seven funds – 3P India Equity Fund, Authum Investment and Infrastructure, Winro Commercial (India) Ltd, Subhkam Ventures, Chartered Finance and Leasing, Belgrave Investment Fund and Aarth AIF – at INR 243 each.
Since the entire issue is an OFS, the company will not receive any liquidation, but the entire amount went to the selling shareholders.
The purpose of the initial share sale is to get the benefits of listing your shares on the stock exchanges. In addition, the company expects that the listing of the shares will increase its visibility and brand image, provide liquidity to shareholders and establish a public market for the shares.
Mamata Machinery provides end-to-end manufacturing solutions for the packaging industry. The company sells its machines under the “Vega” and “Win” brands. It offers a comprehensive range of products serving the entire flexible packaging value chain.
Beeline Capital Advisors is the sole book-run lead manager for the issue. The shares are expected to be listed on December 27 on BSE and NSE
