IPO listings: With 147% premium, Mamata Machinery dazzles; other four issues also see decent listings

According to a recent report, fundraising via initial public offerings (IPOs) in India hit the landmark of ₹1.6 lakh crore in 2024.

Companies tapped the primary market as economic growth, favourable market conditions, and improvements in the regulatory framework helped companies raise a record ₹1.6 lakh crore in 2024, while the pipeline for the next year holds out bigger promise, the report added.

That said, on Friday, December 27, five mainboard IPOs and one SME issue saw their listings on the bourses.

As regards mainboard IPOs, Mamata Machinery, a limited manufacturer of machines used for making plastic bags, stood out as the stock was listed with a premium of nearly 147% on the stock exchanges.

Shares were listed at ₹600 apiece on the NSE, a premium of 146.91% to the issue price of ₹243 apiece. On the BSE, the stock debuted at a premium of 146.91% at ₹600 apiece.

The IPO was also a blockbuster hit as the issue was subscribed 195 times.

The company’s ₹179 crore IPO was entirely an offer for sale.

The non-institutional investors portion received a staggering 274.38 times subscription, while the qualified institutional buyers (QIBs) part was subscribed 235.88 times. Retail individual investors (RIIs) portion garnered 138.08 times subscription.

The ₹179 crore IPO had a price range of ₹230-₹243 per share.

Mamata Machinery provides end-to-end manufacturing solutions for the packaging industry. The company sells its machines under the brand names 'Vega' and 'Win.' It offers a comprehensive range of products, serving the entire flexible packaging market value chain.

The company added that the objective of the initial share sale was to gain the advantages of listing the equity shares on the stock exchanges.

Transrail Lighting

Transrail Lighting, one of the leading Indian engineering, procurement, and construction (EPC) companies with a primary focus on the power transmission and distribution business and integrated manufacturing facilities for lattice structures, conductors, and monopoles, too, listed its shares on the NSE and BSE.

The stock listed at ₹590 apiece on the National Stock Exchange (NSE) on Friday, December 27, a premium of 36.57% to the issue price of ₹432 apiece.

On the BSE, the stock debuted at a premium of 35.45% at ₹585.15 apiece.

Transrail Lighting's ₹839 crore IPO had a price band of ₹410-₹432 per share.

The company's IPO was a combination of a fresh issue of shares worth Rs 400 crore and an offer-for-sale of 1.01 crore equity shares by a promoter, Ajanma Holdings Pvt Ltd.

DAM Capital Advisors

Another stock that made its debut on the bourses today was DAM Capital Advisors.

Shares of DAM Capital Advisors listed at a premium of 38.8% at ₹393 apiece on the NSE. The public issue was 81.8 times oversubscribed on the final day of subscription.

DAM Capital Advisors' initial share sale had a price band of ₹269-₹283 per share.

The IPO was solely an offer for sale (OFS) of 2.97 crore equity shares worth ₹840.25 crore by a promoter and investors at the upper end of the price band.

DAM Capital Advisors provides a wide range of financial solutions in areas of investment banking comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), structured finance advisory, and institutional equities comprising broking and research.

Sanathan Textiles

Yarn manufacturer Sanathan Textiles made a decent debut on stock exchanges, listing its shares at a premium of 31.56% on Friday.

The company's shares started trading on the NSE at ₹422.3 per share, up from the issue price of ₹321 per share.

On BSE, the stock debuted at ₹419.1 per share, reflecting a gain of 30.56% compared to the issue price.

The company's ₹550 crore IPO was a combination of a fresh issue of equity shares aggregating up to ₹400 crore and an offer-for-sale (OFS) of shares valued at ₹150 crore by promoters and promoter group entities.

The issue had a price band of ₹305-₹321 per share sale.

Sanathan Textiles said it planned to utilise proceeds from its fresh issue worth ₹160 crore for payment of the debt, while ₹140 crore would be invested in its subsidiary, Sanathan Polycot Pvt Ltd, for the repayment or prepayment of its borrowings, and the rest will be allocated for general corporate purposes.

Sanathan Textiles operates three distinct yarn business divisions—polyester yarns, cotton yarns, and yarns—for technical textiles and industrial applications. These divisions are managed under a single corporate entity.

Concord Enviro Systems

Shares of Concord Enviro Systems Ltd made a decent debut with the stock listing at a 17.8% premium on the stock exchanges.

The stock opened the session at ₹826 apiece on the NSE, up 17.83% compared with its initial public offering (IPO) price of ₹701 per share.

The ₹500.33 crore Concord Enviro Systems IPO was open for bidding from December 19 to December 23. The mainboard issue was oversubscribed 10.67 times during the three-day bidding period.

The mainboard issue was a mix of fresh issuance of nearly 25 lakh shares, worth up to ₹175 crore, and an offer-for-sale (OFS) of 46 lakh shares, aggregating to ₹325.33 crore.

The price band for the issue was fixed at ₹665 to ₹701 per share, with the minimum lot size for bidding being 21 shares.