Mamata Machinery IPO: GMP spikes. Check subscription status, should you apply as issue ends tomorrow | Stock Market News

Mamata Machinery IPO: The initial public offering (IPO) of Mamata Machinery Ltd has been receiving strong demand from investors across categories. The bidding for Mamata Machinery IPO opened on December 19 and will close on Monday, December 23. So, applicants have just one day to apply for the Mamata Machinery IPO as the public issue closes tomorrow. Strong demand has even led to a sharp jump in Mamata Machinery IPO grey market premium (GMP). Mamata Machinery IPO GMP signals a strong trend for the stock.

Mamata Machinery IPO GMP today

Mamata Machinery shares are showing a bullish trend in the grey market. According to stock market observers, Mamata Machinery IPO GMP today has spiked to ₹261 per share. Despite the stock market crash on Friday, the Mamata Machinery IPO GMP remains strong, signalling a decent return upon listing.

Mamata Machinery IPO GMP indicates that in the grey market, the equity shares of the company are trading higher by ₹261 apiece than their issue price. This means that the stock is trading at ₹504 apiece in the grey market, a robust premium of 107% to its IPO price of ₹243 per share, signalling that allottees may get their money doubled within a week.

Mamata Machinery IPO Subscription Status

Mamata Machinery IPO has been booked 37.75 times in total so far. The issue received bids for 19.54 crore shares as against 51.78 shares on the offer, as per NSE data till the end of the second day of the bidding process.

The retail portion of the Mamata Machinery IPO has been subscribed 51.03 times, the Non-Institutional Investors (NII) segment has been booked 50.23 times, and the Qualified Institutional Buyers (QIBs) portion is subscribed 4.74 times.

Mamata Machinery IPO Review

Rajan Shinde, Research Analyst, Mehta Equities Ltd said he believes Mamata Machinery Ltd IPO brings investors to invest in a player in the packaging machinery industry, known for its precision and automated solutions.

“On valuation par se at the upper price band of ₹243, the issue is asking for market cap of ₹598 crore. Based on annualized FY2025 earnings and fully diluted post-IPO paid-up capital, the company is asking for PE of 14.65x which looks reasonable considering the long term outlook. Investors should also look at IPO offers which come with 100% OFS i.e ₹179.39 crore issue which is an area of concern for new investors. As industries increasingly shift toward automation and flexible packaging solutions, Mamata’s strong customer relationships, extensive global distribution network and emphasis on after-sales services enable repeat business and foster brand trust, we believe well-positioned to capitalize on this growth,” said Shinde.

Hence, looking at all attributes he recommends investors to “subscribe” Mamata Machinery IPO for long term perspective.

According to Choice Broking, at the upper end of its price range, Mamata Machinery IPO is demanding a P/E multiple of 16.6x, based on its FY24 EPS of ₹14.7, and a EV/Sales multiple of 2.6x, this valuation seems to be at a discount compared to its peers.

“The company has shown consistent performance over the years, with a growing number of machines sold both in India and internationally, leading to a steady improvement in margins. Looking ahead, we believe Mamata Machinery Ltd has strong long-term growth potential by expanding its presence in regions such as Europe, Africa, and the Middle East, which will further increase its customer base. Thus, we recommend a “Subscribe” rating for this issue,” Choice Broking said.

Mamata Machinery IPO Details

Mamata Machinery IPO opened for subscription on December 19, and will close on December 23. The IPO allotment is expected to be finalized on December 24, and the IPO listing date is likely December 27. Mamata Machinery shares will be listed on BSE and NSE.

Mamata Machinery IPO price band was set at ₹230 to ₹243 per share. The company aims to raise ₹179.39 crore from the book-built issue which is entirely an offer for sale of 73.82 lakh shares.

Beeline Capital Advisors Pvt Ltd is the book running lead manager of the Mamata Machinery IPO, while Link Intime India Private Ltd is the IPO registrar.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.