Mamata Machinery Limited IPO (Mamata Machinery IPO) Detail Review –
Mamata Machinery Limited IPO (Mamata Machinery IPO) is set to open for subscription from 19th Dec 2024 to 23rd Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Mamata Machinery Limited IPO (Mamata Machinery IPO). Keep scrolling below to read more!
Mamata Machinery Limited IPO (Mamata Machinery IPO) Overview –
Established in April 1979, Mamata Machinery Limited manufactures and exports machines for making plastic bags, pouches, packaging, and extrusion equipment. The company provides manufacturing solutions for the packaging industry.
The company caters to FMCG, Food, & Beverage industries. The company’s customers include Balaji Wafers Private Limited, Dass Polymers Private Limited, Jflexy Packaging Private Limited, Euphoria Packaging Private Limited, Sunrise Packaging, Om Flex India, Chitale Foods, V3 Polyplast Private Limited, Dhalumal Packaging Industries LLC, Laxmi Snacks Private Limited, Ganges Jute Private Limited, Western India Cashew Company Private Limited and N. N. Print & Pack Private Limited and Gits Food Products Private Limited and Emirates National Factory for Plastic Ind LLC.
As of May 31, 2024, the company has exported machines to over 75 countries. The company has international offices in Bradenton, Florida, and Montgomery, Illinois, as well as sales agents in over five countries across Europe, South Africa, and Asia..
The company has two machine manufacturing facilities, one in India and one in the USA.
As of May 31, 2024, the company employs 87 skilled engineers and application experts in electronics, mechanics, software, and design.
Competitive Strength
- A major exporter of machinery and equipment for bag and pouch making, packaging, and co-extrusion blown film machinery and attachments.
- Advanced manufacturing tools and material knowledge to customize systems and products based on customers’ needs.
- Customer-centric operations, with an extensive global sales and distribution network.
- Experienced Management Team
Mamata Machinery Limited IPO (Mamata Machinery IPO) Synopsis –
Mamata Machinery Limited IPO (Mamata Machinery IPO) is set to be open for subscription from 19th Dec 2024 to 23rd Dec 2024, offering offer for sale of 0.74 crore shares aggregating to Rs 179.39 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Friday, December 27, 2024.
The total issue size of this IPO amounts to Rs. 179.39 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 19th Dec 2024 |
| Closing Date | 23rd Dec 2024 |
| Lot Size | 61 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 179.39 Cr |
| Fresh Issue | — |
| IPO Price Range | Rs. 230 – 243 |
| Min. Investment | Rs. 14,823 |
| Offer for Sale (OFS) | Rs. 179.39 Cr |
| Employee Discount | ₹12 Per Share |
| Basis of Allotment | 24th Dec 2024 |
| Refunds | 26th Dec 2024 |
| Listing Date | 27th Dec 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Mamata Machinery Limited IPO (Mamata Machinery IPO) Market Lot –
Mamata Machinery Limited IPO (Mamata Machinery IPO) minimum market lot is 61 shares with ₹14,823 application amount. The retail investors can apply up to 13 lots with 793 shares or ₹1,92,699 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 61 | ₹14,823 |
| Retail Maximum | 13 | 793 | ₹1,92,699 |
| S-HNI Minimum | 14 | 854 | ₹2,07,522 |
| S-HNI Maximum | 67 | 4,087 | ₹9,93,141 |
| B-HNI Minimum | 68 | 4,148 | ₹10,07,964 |
Mamata Machinery Limited IPO (Mamata Machinery IPO) Book Running Lead Managers –
- Beeline Capital Advisors Private Limited
Mamata Machinery Limited IPO (Mamata Machinery IPO) Promoters –
Mahendra Patel
Chandrakant Patel
Nayana Patel
Bhagvati Patel
Mamata Group Corporate Services LLP
Mamata Management Services LLP.
Pre-Issue Promoter Shareholding | 92.45% |
Post-Issue Promoter Shareholding | – |
Mamata Machinery Limited IPO (Mamata Machinery IPO) Registrar to the offer –
The registrar for the Mamata Machinery Limited IPO (Mamata Machinery IPO) is Link Intime India Pvt Ltd. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Carry out the Offer for Sale of up to 7,382,340 Equity Shares by the Selling Shareholders; and
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Key Performance Indicator –
The market capitalization of Mamata Machinery Limited IPO is Rs 598.00 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 19.41% |
| ROCE: | 15.71% |
| EBITDA Margin: | 11.82% |
| PAT Margin: | 11.20% |
| Debt to equity ratio: | 0.15 |
| Earning Per Share (EPS): | ₹8.41 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 17.67% |
| Net Asset Value (NAV): | ₹47.62 |
Financial Status –
Mamata Machinery Limited’s revenue increased by 14.84% and profit after tax (PAT) rose by 60.52% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 30 June 2024.
The company’s total assets are Rs. 240.85 crore.
The company’s total revenue is Rs. 29.19 crore.
The company’s PAT is Rs. 0.22 crore.
The company’s net worth is Rs. 132.82 crore
| Period Ended | 30 June 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 240.85 | 237.49 | 228.47 | 216.33 | ||||||||||||||||||||||||||||||||||||
| Revenue from operations | 29.19 | 241.31 | 210.13 | 196.57 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 0.22 | 36.13 | 22.51 | 21.70 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 132.82 | 131.88 | 127.38 | 103.56 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | ||||||||||||||||||||||||||||||||||||||||
| Total Borrowing | 4.34 | 11.60 | 18.63 | 20.86 | ||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Evaluation of P/E Ratio :
Considering the FY ended 31 Mar 2024 with an EPS of Rs.14.65 from the last year, the resulting P/E ratio is 16.59x.
Considering the weighted EPS of Rs.10.39 for the last three years, the P/E ratio is 23.39x.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 43.90x.
In simple words, the P/E ratio of this IPO (16.59x), compared with the industry’s average P/E of 43.90x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Mamata Machinery Limited IPO (Mamata Machinery IPO) –
Mamata Machinery Limited peer comparison with similar listed entities. (As on March 28, 2024)
| Company Name | EPS | NAV | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|
| Mamata Machinery Limited | 14.65 | 53.59 | 27.39 | Consolidated | ||
| Rajoo Engineers Ltd. | 3.41 | 20.59 | 57.16 | 16.59 | 9.7 | Consolidated |
| Windsor Machines Ltd. | -1.19 | 41.07 | -2.89 | 1.61 | Consolidated | |
| Kabra Extrusiontechnik Ltd. | 9.8 | 134.52 | 30.64 | 7.48 | 2.21 | Consolidated |
Dividend Policy –
A Dividend of Rs.0.50 per equity share was paid out by the company from 01 July 2024 till the filing of the RHP & in FY24 and Rs.5 in FY23.
Mamata Machinery Limited IPO (Mamata Machinery IPO) Strengths –
An important company providing machines and equipment for bag and pouch making, packaging, and co-extrusion blown film machinery and attachments.
Advanced manufacturing tools and understanding of materials to configure systems and products according to customers’ specifications.
Businesses that are focused on the needs of the customer and have a vast worldwide sales and distribution network.
Prominent Management Team.
Mamata Machinery Limited IPO (Mamata Machinery IPO) Weakness –
Nonexistence of Established Market for Equity Shares: The public issue of equity shares has been the first formal market for the company. No assurance of trading of shares at all, nor can the company predict the price of its shares post-listing.
Entire Loss Risk of Investment: Investments in equity and equity-related securities have the inbuilt risk from which no loss of investment is likely. Investors are better advised to rely on self-examination.
Risks Associated with the Overall Economy and the Market: Changes in economic conditions, in the market, or in the industry itself will hurt the company both in terms of performance and share price.
Dependency upon Key Management: The future performance of the company shall heavily depend on the key management personnel. Adverse impact operations may face a loss of skilled personnel or failure to attract the same.
Compliance and Legal Risks: Non-compliance or involvement in legal squabbles would severely hurt the company’s financial as well as reputational bottom lines.
These risks paint a very broad picture of the possible risks spelled out in the company’s red herring prospectus.
Mamata Machinery Limited IPO (Mamata Machinery IPO) Status –
Mamata Machinery Limited IPO (Mamata Machinery IPO) allotment status will be available on the Link Intime India Pvt Ltd website. Click on this link to get allotment status.
Disclaimer –
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
