Mamata Machinery IPO: GMP jumps after strong subscription status. Should you apply as the issue ends on Monday? | Stock Market News

Mamata Machinery IPO: Bidding for the initial public offering (IPO) of Mamata Machinery Limited began on 19th December 2024 and will remain until 5:00 PM on 23 December 2024. So, applicants have just one day to apply for the Mamata Machinery IPO as the public issue closes on Monday next week. According to Mamata Machinery’s IPO subscription status, the public issue received a strong response from the Indian primary market investors in the first two days of bidding, who received bids to 37.75 times the offer. Meanwhile, the grey market continues to signal positive sentiments regarding Mamata Machinery IPO. According to stock market observers, shares of the company are available at a premium of ₹251 in the grey market today.

Mamata Machinery IPO GMP today

As mentioned, Mamata Machinery IPO GMP (Grey Market Premium) today is ₹261, which is Re 1 higher than Friday’s GMP of ₹260. They said that Mamata Machinery IPO GMP today is higher than the previous day’s GMP despite the stock market crash on Friday, which is a good sign. If there is a trend reversal during Monday deals, these strong grey market sentiments may increase investor response.

On what this Mamata Machinery IPO GMP mean, market observers said that Mamata Machinery IPO price band is ₹230 to ₹243, whereas Mamata Machinery IPO GMP today is ₹261. So, after two days of bidding, the grey market is signalling that lucky allottees may get their money doubled within a week.

Mamata Machinery IPO subscription status

After two days of bidding, the public issue had been booked 37.75 times, the retail portion of the book build issue had been subscribed 51.03 times, the NII segment had been filled 50.23 times, and the QIB portion had been subscribed 4.74 times.

Mamata Machinery IPO review

Assigning a ‘buy’ tag to Mamata Machinery IPO, Prathamesh Masdekar, Research Analyst at StoxBox, said, “Mamata Machinery is strategically focused on strengthening relationships with existing customers and expanding its product offerings across geographies to drive growth. The company plans to win new customers and explore emerging opportunities within its product categories by developing products aligned with customer needs. Currently focused on food packaging, diversification will be advantageous in other FMCG sectors. Additionally, the company plans to capitalize on regulatory changes, such as restrictions on single-use plastics, by offering suitable alternatives. It has already developed technologies that enable customers to use recyclable plastic films.”

“The company has a strong international presence, with manufacturing facilities in India and the US. Mamata’s expansive product portfolio, global presence and technological leadership position it for sustained growth in the packaging machinery sector. Focusing on delivering quality products at competitive prices, the company aims to enhance operational efficiencies, increase economies of scale, better absorb fixed costs, and strengthen its competitive position. By improving capacity utilization and increasing production volumes, the company intends to meet growing customer demand while driving productivity and cost reduction. Given the company’s strong market presence, improved financial performance and focus on quality and new product development, we recommend a “SUBSCRIBE” rating for the issue,” the StoxBox expert said.

Giving a ‘subscribe’ tag to the public issue, Canara Bank Securities said, “Mamta Machinery is a high-potential player in the packaging industry with a strong technological edge, robust financials, and significant global presence. The company’s patents and export-oriented operations give it a competitive advantage, ensuring high margins and sustainable growth. However, challenges such as seasonality, stiff global competition, and reliance on non-recyclable polymers could threaten its growth. The company’s strategic focus on recyclable packaging and geographic expansion into the Middle East and Africa indicates proactive efforts to overcome these challenges. In terms of valuation, they are available at a P/E of 16.59x as of FY2024, which appears pretty valued compared to peers.

In contrast, annualized FY2025 P/E stands at 675x and appears to be elevated as the first two quarters account for not even 15% of the revenue, contrary to the given numbers of 30-40% revenue contribution. This needs to be monitored in the near future. Hence, we recommend the issue to SUBSCRIBE for long-term gains.”

Mamata Machinery IPO details

The most likely Mamata Machinery IPO allotment date is 24 December 2024, and the most likely Mamata Machinery IPO listing date is 27 December 2024.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.