Mamata Machinery’s first public stock offering (IPO), which started last Thursday, ends today. Investors are responding very strongly to the stock sale, and early market signs suggest it could be worth much more when trading starts.
The Details of the Stock Sale
Mamata Machinery is offering stocks worth ₹179.39 crore, which will close for buying today, December 23. After two days of people buying shares, the offer was bought 37.34 times more than what was available.
- Professional investors (QIB) bought 4.74 times their share
- Large investors (NII) bought 49.45 times their share
- Regular retail investors bought 50.55 times their share
- Company employees bought 53.97 times their share
The company is selling 0.74 crore existing shares, with each share priced between ₹230 and ₹243.
About the Company
Started in April 1979, Mamata Machinery makes and exports machines that are used to make:
- Plastic bags
- Pouches
- Packaging materials
- Special equipment for plastic processing
Important Things to Know Before Investing
There are several risks to consider:
- The company heavily depends on businesses in food, everyday products (FMCG), and consumer goods. If these industries slow down, it could hurt the company’s growth and money-making ability.
- Most of their money comes from a small group of customers. Their top ten customers bring in about 30.76% of all money over the last three years. Losing any of these customers could seriously affect their business.
- The company makes most of its money from selling abroad. International sales made up:
- 70.42% in the three months ending June 30, 2024
- 65.28% in 2024
- 71.52% in 2023
- 66.13% in 2022 Any problems with international trade could hurt their business.
Latest Update on Share Buying
As of the last day, the stock offer was bought 66.26 times over. Here’s how different groups bought shares:
- Professional investors: 4.90 times
- Large investors: 121.49 times
- Regular investors: 77.42 times
- Employees: 83.16 times
The Company’s Leaders
- Mahendra Patel (Chairman and Managing Director):
- Over 40 years of engineering experience
- Has a mechanical engineering diploma and MSc in industrial engineering
- Manages overall company growth and planning
- Chandrakant Patel (Joint Managing Director):
- With company since 1990
- Engineering degree holder
- Over 30 years in machine engineering
- Handles sales, service, and marketing
- Neha Nowlakha (Independent Director):
- Joined in 2024
- Has commerce degree and MSc in international business
- 20+ years in finance
- Worked with Forvol Investment and HSBC Bank
- Other Independent Directors:
- Subba Bangera: 20+ years in engineering
- Munjal Patel: 20+ years in pharmaceuticals
- Ruchita Patel: 8+ years in legal and company matters
Money Performance
The company has grown steadily: Money from business operations:
- 2022: ₹192.25 crore
- 2023: ₹200.86 crore
- 2024: ₹236.61 crore
Profits after tax:
- 2022: ₹21.70 crore
- 2023: ₹22.50 crore
- 2024: ₹36.12 crore
Why They’re Selling Shares The company wants to:
- Let current owners sell some of their shares
- Get listed on stock exchanges
- Make the company more well-known
- Make it easier for people to buy and sell their shares
Expected Stock Price
Today’s unofficial market (grey market) suggests:
- The stock might start trading at ₹503
- This would be 107% more than the highest price of ₹243 they’re asking for
Who’s Selling Their Shares
The following people and groups are selling shares:
- Mahendra Patel: 534,483 shares
- Nayana Patel: 1,967,931 shares
- Bhagvati Patel: 1,227,042 shares
- Mamata Group Corporate Services LLP: 2,129,814 shares
- Mamata Management Services LLP: 1,523,070 shares