Mamata Machinery IPO 2024: Key Dates, Details & Investment Tips

Mamata Machinery Limited, a leading global exporter and manufacturer in the packaging industry, is gearing up to launch its ₹179.39 crore Initial Public Offering (IPO) from December 19 to December 23, 2024. Known for its cutting-edge solutions and global presence, this IPO presents a unique investment opportunity for those interested in the expanding packaging and machinery sector.

Here are the 10 key things you should know before investing in the Mamata Machinery Limited IPO:

What makes Mamata Machinery Limited a good opportunity?

Mamata Machinery Limited has emerged as a trusted name in the packaging machinery industry, offering innovative and comprehensive solutions for FMCG, food, and beverage companies globally.

Global presence: Operates in 75+ countries with offices in the USA and sales agents across continents.

Strong track record: Over 4,500 machines installed worldwide since inception in 1989.

In-house expertise: A team of 87 engineers with four patents in design and packaging technology.

Financial stability: Demonstrates consistent revenue growth with a robust global customer base, including names like Balaji Wafers and Dass Polymers.

What are the IPO dates, price band, and issue size?

Key details of the Mamata Machinery Limited IPO:

IPO dates: December 19th – December 23rd, 2024

Listing date: December 27th, 2024

Price band: ₹230–₹243 per share

Total issue size: ₹179.39 Cr (Offer for Sale)

Face value: ₹10 per share

Listing exchanges: BSE, NSE

Lot size: 61 shares

Promoters: Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP

What is the minimum investment for the IPO?

The minimum investment required for the Mamata Machinery Limited IPO is ₹14,030, based on a lot size of 61 shares at the lower price band of ₹230 per share. For a higher likelihood of allotment, it is recommended to apply at the upper price band, which will cost ₹14,823 (61 shares at ₹243 per share).

What does the company do?

Incorporated in 1989, Mamata Machinery Limited specializes in manufacturing machinery for the packaging industry, catering to FMCG, food, and beverage sectors.

Products: Plastic bag and pouch-making machines, co-extrusion machines, and packaging equipment.

Operations: Advanced manufacturing facilities in India and the USA.

Clientele: Includes prominent names like Balaji Wafers, Dass Polymers, and Jflexy Packaging.

Global network: Offices in Florida and Illinois, USA, and sales agents across five countries.

What is the objective of the IPO?

The IPO is purely an Offer for Sale (OFS), meaning the company will not receive any proceeds. All proceeds will go to the selling shareholders after deducting offer-related expenses.

How much is reserved for retail and other investors?

The IPO allocation is as follows:

Qualified Institutional Buyers (QIBs): Up to 50%

Non-Institutional Investors (NIIs): At least 15%

Retail Investors: At least 35%

What are the key strengths and risks?

Strengths:

Leading exporter with over 4,500 machines installed globally.

Comprehensive product portfolio, including co-extrusion and pouch-making machines.

Robust R&D capabilities with four granted patents.

ISO 9001:2015 certification for quality management.

Risks:

Heavy reliance on third-party suppliers (92.86% of parts sourced externally).

Dependence on FMCG and Food & Beverage sectors (67.73% of revenue).

High inventory levels, with 880 days of inventory as of Q1FY25.

Fierce competition, with only a 3% export market share.

Export revenue (70.42%) makes the company vulnerable to forex risks.

What is the financial performance of Mamata Machinery Limited?

The company has demonstrated steady growth over the years (₹ Cr):

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ Cr)	₹240.84	₹237.48	₹228.47	₹216.33
Revenue (₹ Cr)	₹29.19	₹241.31	₹210.13	₹196.57
Profit After Tax (₹ Cr)	₹0.22	₹36.13	₹22.51	₹21.70

What is the allotment and listing timeline?

Basis of allotment: December 24, 2024

Refund initiation: December 26, 2024

Shares credited to demat accounts: December 26, 2024

Listing date: December 27, 2024

Should you invest in Mamata Machinery Limited IPO?

Mamata Machinery Limited’s strong market presence, diverse product portfolio, and focus on innovation make it an attractive investment option. However, the heavy reliance on external suppliers and export revenue, along with competitive pressures, are factors to consider.

Evaluate your risk appetite and investment objectives before applying for this IPO.

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