The initial public offering (IPO) of Mamata Machinery Ltd, a leader in packaging machinery manufacturing, has garnered massive investor interest, with the issue being subscribed 37.34 times by the end of the second day of bidding. This overwhelming demand reflects the robust confidence of investors in the company’s growth potential and leadership in its sector.
Strong subscription across segments
The IPO, which opened for bidding on December 19, 2024, and will close on December 23, saw significant traction across all investor categories. The Qualified Institutional Buyers (QIB) segment was subscribed 4.74 times, while the Non-Institutional Investors (NII) segment witnessed an impressive subscription of 49.45 times. The retail investor segment outshone others, with a subscription rate of 50.55 times, while the employee quota was subscribed 53.97 times.
IPO details and fundraising
Priced in the range of ₹230 to ₹243 per equity share, the Mamata Machinery IPO aims to raise ₹179.39 crore at the upper end of the price band. The issue consists entirely of an offer-for-sale (OFS) of 73.82 lakh equity shares, allowing existing shareholders to divest their stakes. The IPO lot size is set at 61 shares, making it accessible to a wide range of retail investors.
Listing and grey market premium (GMP)
The equity shares of Mamata Machinery are slated to debut on the BSE and NSE on December 27. The IPO is already signaling a substantial upside in the grey market, with a GMP hinting at a listing premium exceeding 100%, further driving investor excitement.
Growth and market outlook
Mamata Machinery’s dominance in packaging machinery manufacturing positions it as a vital player in India’s industrial growth story. With innovative technologies and a strong market presence, the company is poised to capitalize on the increasing demand for efficient and sustainable packaging solutions.
The enthusiastic response to Mamata Machinery’s IPO underscores India’s evolving investment landscape, where businesses aligned with the country’s manufacturing and export growth trajectory are gaining prominence.
