Employee - Mamata Machinery IPO

Mamata Machinery IPO Details

Mamata Machinery IPO Date

Mamata Machinery Limited IPO will open for subscription on December 19, 2024, and the closing date for the IPO is December 23, 2024, according to the offer document filed by the company with SEBI. After this, investors are expected to be updated about the allotment status on Tuesday, December 24, 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on December 26, 2024. The shares will be listed on the NSE and the BSE on Friday, December 27, 2024.

Mamata Machinery IPO Price Band

The IPO price band has been set between ₹230 to ₹243 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue of ₹179.39 crore, with an offer for sale of 7,382,340 equity shares.

The Mamata Machinery Limited IPO listing price will be determined on December 27, 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Mamata Machinery IPO Lot Size

The Mamata Machinery Limited IPO details have been declared. The minimum lot size for an application is 61 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹179.39 crore.

Mamata Machinery IPO Objective

The IPO aims to enable selling shareholders to monetise their holdings through an Offer for Sale (OFS) while boosting the company’s visibility and credibility through stock exchange listing, unlocking new growth and financial opportunities.

About Mamata Machinery 

Incorporated in 1979, Mamata Machinery Limited is one of the leading manufacturers and exporters of plastic bag and pouch-making machines, packaging equipment, and extrusion tools. The company provides end-to-end manufacturing solutions for the packaging industry, catering to diverse applications in food, FMCG, e-commerce, and garment packaging.

Mamata Machinery focuses on three main product areas: bag and pouch-making machines, packaging machines, and co-extrusion blown film machines. These machines serve different purposes in the entire flexible packaging market value chain. The company sells its products under the brand names “Vega” and “Win.” 

As of September 30, 2024, Mamata Machinery has supplied over 4,500 machines to 75 countries worldwide. It operates two manufacturing facilities: one in Ahmedabad, India, spanning 20,662 square meters, and another in Bradenton, Florida, USA. In FY24, the company derives 65.28% of its revenue from exports, with major markets in Europe, South Africa, Asia, and the Americas. 

Between FY21 and FY24, the company's revenue from operations rose at a CAGR of over 7.1%, while net profit rose 18.5% during the same period. In FY24, the company's top ten customers contributed 31.69% to the total revenue. Meanwhile, its EBITDA increased from ₹29.94 crores in FY2022 to ₹47.18 crores in FY2024, reflecting a CAGR of 16.37%.

The global packaging machinery market is expected to grow at a CAGR of 4.5% between 2022 and 2028 to reach $60.8 billion, while the Indian packaging machinery industry is pegged at $5.5 billion in 2023. This is mainly due to the increasing demand for packaged food, driven by convenience and cost-effectiveness. This rising trend offers a great opportunity for the company to secure new orders and grow.    

Now, Mamata Machinery Limited is launching its initial public offer (IPO). The total IPO issue size is ₹179.39 crores, comprising purely an offer for sale. Its shares will be listed on the NSE and BSE.

Company Name:  Mamata Machinery Limited.

Company Established On: April 17, 1979

Company Type: Public Limited Company

Managing Director: Mahendra N. Patel

CEO: Apurva N. Kane

Financial snapshot

Mamata Machinery IPO Analysis

Strengths and Opportunities

1. Growing demand from FMCG, pharmaceuticals, and e-commerce, offering opportunities for scaling and product diversification.
2. Rising interest in sustainable packaging creates a market for eco-friendly machinery, enhancing competitiveness through innovation.
3. The company has advanced manufacturing infrastructure and material knowledge to customise systems and products based on customer specifications.
4. The company has a diversified client base across 75 countries, comprising end-customer brands and conversion players. 
5. In FY24, the United States of America accounted for 19.2% of total revenue, while Mexico, Portugal and Canada are other key export destinations for the company. 
6. A major global supplier of specialised machinery for packaging, bag production, and industrial film manufacturing.
7. Emphasis on quality control improves machinery reliability, building customer trust and strengthening industry reputation.

Risks and Threats

1. Dependence on FMCG, food & beverage, and consumer industries makes it vulnerable to sectoral slowdowns.
2. High inventory levels (880 days as of June 2024) increase risks of overstocking, wastage, and unfulfilled orders.
3. A competitive market with rapid technological advancements poses obsolescence risks, price erosion, and aggressive competition.
4. Top 10 customers contribute ~30.76% of revenues, creating dependency risks.
5. Over 65% of revenue from international markets exposes the company to geopolitical, regulatory, and currency risks.
6. Regulatory scrutiny of plastic packaging could lead to bans, severely impacting demand and growth prospects.
7. Manpower-intensive operations face risks from wage demands, attrition, and difficulty in hiring skilled personnel.
8. Ongoing legal and tax proceedings involving the company and its promoters could result in adverse rulings affecting financial stability and reputation.        

How to apply for the Mamata Machinery IPO?

If you are interested to invest in Mamata Machinery IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Mamata Machinery IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the Mamata Machinery IPO on Upstox which usually begins a day before the IPO opens for subscription.