Mamata Machinery, Transrail Lighting among 5 IPOs to make market debut on Dec 27: Key things to know ahead of listing

The primary market investors are expected to see an action-packed day on December 27. As many as six IPOs, including five mainboard public offers, are scheduled to make market debut on Friday.

Investors will closely monitor the listing of five mainboard IPOs of Mamata Machinery, Concord Enviro, Transrail Lighting, DAM Capital Advisors, and Sanathan Textiles on the BSE and NSE.

Apart from these mainboard issues, Newmalayalam Steel Ltd's small and medium enterprise (SME) IPO is also set to debut on the NSE Emerge platform.

Mamata Machinery IPO

The ₹179.39-crore initial public offering of Mamata Machinery Limited was only an offer-for-sale (OFS) of 74 lakh shares. The IPO price band was fixed at ₹230 to ₹243 per share.

The subscription window for Mamata Machinery IPO was open from December 19 to December 23. During the three-day bidding period, Mamata Machinery IPO fetched an enormous 194.95 times subscription.

Since the IPO is entirely an OFS, the issue proceeds will go to the selling shareholders. Mamata Machinery expects that listing its shares on the stock exchanges will boost its image and visibility. The company has stated that the objective of the initial share sale is to gain the advantages of listing the equity shares on the stock exchanges.

Mamata Machinery is a manufacturing solutions provider for the packaging industry. It sells machines under the 'Vega' and 'Win' brands and offers a wide range of products for the entire flexible packaging market. As of September 30, 2024, Mamata Machinery has supplied over 4,500 machines to 75 countries worldwide.

Key financials

Transrail Lighting IPO

The ₹838.91-crore initial public offering of Transrail Lighting Ltd consisted of a fresh issuance of shares worth ₹400 crore and an offer for sale of over one crore shares worth ₹438.91 crore. It had set a price range of ₹410 to ₹432 per share.

The IPO's subscription window was open from December 19 to December 23. During the three-day bidding period, Transrail Lighting IPO fetched a robust 80.8 times subscription.

The company will use ₹250 crore from the net IPO proceeds to fund incremental working capital requirements and ₹90.7 crore for capital expenditures. The rest will be utilised for general corporate purposes.

The net proceeds from the offer-for-sale component will be received by the promoter selling shareholders, and the company will not receive any proceeds from this. Additionally, the company expects to benefit from listing on the stock exchanges as it will enhance its visibility and brand image.

Transrail Lighting is among the major engineering, procurement, and construction (EPC) firms. Its main focus is on the power transmission and distribution business as well as integrated manufacturing facilities for conductors, lattice structures, and monopoles. The company has a footprint in 58 countries and has successfully completed more than 200 projects globally.

Key Financials

Concord Enviro Systems IPO

Concord Enviro Systems IPO consisted of a fresh issuance of nearly 25 lakh shares and an OFS component of 46 lakh shares. The IPO price band was set at ₹665 to ₹701 per share.

Concord Enviro IPO fetched a healthy 10.67 times subscription during the three-day bidding period from December 19-23. Here’s a look at its IPO subscription across different categories.

The company intends to use ₹105.5 crore from net IPO proceeds to invest in its various wholly owned subsidiaries to develop new projects and repay outstanding loans. The rest of the IPO proceeds will be utilised to invest in technology, new growth initiatives and general corporate purposes.

Concord Enviro Systems Ltd is primarily engaged in water management and wastewater treatment projects. It provides total water management services, encompassing consultancy, engineering, commissioning and monitoring operations.

Key Financials

Between FY22 and FY24, the company's revenue from operations rose at a CAGR of over 22.82%, while net profit rose 58.5% during the same period.

DAM Capital Advisors IPO

The initial public offering of DAM Capital Advisors Ltd was exclusively an offer-for-sale with no fresh issue component. The company had fixed the price band at ₹269 to ₹283 per share for its ₹840.25-crore IPO.

During the bidding from December 19 to December 23, DAM Capital Advisors IPO was overall subscribed 82.08 times.

Net proceeds from the IPO will go to the selling shareholders, and the company will not receive any proceeds from this public issue. Further, the company wants to achieve the benefits of listing its shares on the stock exchanges and enhance its visibility and brand image.

DAM Capital Advisors’ services include investment banking, which covers equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory. According to the company, it had a 12.1% market share in FY24 as a book-running lead manager based on the number of IPOs and QIPs undertaken.

Key Financials

Between FY22 and FY24, the company's revenue from operations rose at a CAGR of 38.86%, while net profit rose 79.46% during the same period.

Sanathan Textiles IPO

The ₹550-crore initial public offering of Sanathan Textiles Ltd consisted of a fresh issue of 1.25 crore shares, worth ₹400 crore, and an offer-for-sale (OFS) component of 47 lakh shares, worth ₹150 crore. It had set a price range of ₹305 to ₹321 per share.

The funds raised through the Sanathan Textiles IPO will be used for a few key purposes. A portion of the proceeds will be used to repay or partially pay off some of the company’s existing borrowings. The company also plans to invest in its subsidiary, Sanathan Polycot Pvt. Ltd, towards debt repayment. The remaining funds will be allocated for general corporate purposes.

Sanathan Textiles Ltd specialises in producing polyester yarn and supplying cotton yarn globally. In FY24, the company catered to 1,571 clients through its diversified product portfolio of over 14,000 varieties of yarn products and more than 190,000 SKUs used in various forms and for varied end uses.

Key Financials

The company's revenues have been volatile in recent years. It reported ₹3,185.32 crore in FY22, which declined to ₹2,957.50 crore in FY24 due to a reduction in selling price. Meanwhile, net profit also declined from ₹355.44 to ₹133.84 crore.