IPO listed on 27 Dec'24
Mamata Machinery Ltd
Minimum Investment
₹ 14,823 / 61 shares
Grey market premium
₹ 260 (107% premium)
Issue price
₹ 243
Listing price
₹ 600
Listing gains
357 (147%)
Listing on
Dec 27, 2024
Our Verdict:
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- Mamata Machinery Ltd (MML) has demonstrated robust growth in both revenue and profits in recent years, maintaining strong return ratios.
- From a valuation perspective, the IPO is attractively priced at a P/E ratio of 17x based on FY24 earnings. Additionally, the grey market premium for the IPO also suggests a solid debut on the bourses.
- With a history of strong financial performance marked by industry leading margins, MML seems well-prepared for sustained future growth. Given these factors, investors can consider subscribing to the IPO from a long-term perspective.
About the company
Founded in
17 Apr'79
Managing director
Mahendra Patel
- MML manufactures and exports a variety of packaging machines, including plastic bag and pouch making machines, along with extrusion equipment. The company provides comprehensive manufacturing solutions for the packaging industry, with machines producing packaging primarily for the food and FMCG sectors.
- MML primarily supplies packaging machinery to consumer brands in the FMCG, Food, and Beverage industries, and bag and pouch making machines to converters and service providers in similar sectors. These machines are also used for non-packaging purposes such as e-commerce and garment bags. Products are sold under the “Vega” and “Win” brands, with over 4,500 machines installed across 75 countries as of September 30, 2024.
STRENGTHS
- Market Leadership: In FY24, MML positioned itself as the seventh largest exporter of packaging machines in India, capturing 3% of the total market share in packaging machinery exports.
- Impressive Financial Growth: MML has exhibited remarkable growth, with operational revenue, EBITDA, and net profit seeing substantial compounded annual growth rates (CAGRs) of 11%, 26%, and 29%, respectively, from FY22 to FY24.
- Strong Return Metrics: MML has shown excellent return ratios, boasting a Return on Equity of 28% and a Return on Capital Employed (ROCE) of 31% as of FY24, outperforming its listed peers.
- High Profitability Margins: MML stands out with one of the highest profitability margins among its peers, boasting an EBITDA margin of 19.94% and a PAT margin of 15.27% as of FY24.
- Extensive Global Reach: As of September 30, 2024, MML serves a diverse customer base in over 75 countries, including end customer brands and conversion players. Notable clients include Balaji Wafers, Dass Polymers, Euphoria Packaging, Sunrise Packaging, V3 Polyplast, Laxmi Snacks, Emirates National Factory, and Hershey India.
RISK FACTORS
- Client Concentration: The top 10 customers account for nearly 75% of the operating revenue for the quarter ending June 30, 2024. Losing any major customer or significant contract could severely affect the firm’s business, financial stability, and performance.
- Negative Cash Flows: MML experienced negative cash flows from operating activities in the June quarter of FY25, and this trend may persist. Continued negative cash flows could adversely affect the company's financial stability.
- Export Dependency and Currency Risk: A majority of MML’s revenue is derived from exports, with over 70% of its sales coming from outside India in the three-month period ending June 30, 2024. Disruptions in the export markets or significant foreign currency fluctuations could negatively impact its business and financial position.
Issue details
Issue type
Mainstream
Issue size
₹ 179.39 crore
Fresh Issue
₹ -
OFS
₹ 179.39 crore
Price range
₹ 230 - 243
Lot size
61 shares
Issue Objective
This is purely an offer for sale (OFS), which means that the company itself will not receive any of the proceeds from the offer. Instead, all proceeds will be directed to the Selling Shareholders.
Dates
Bidding open
19 Dec'24
Bidding close
23 Dec'24
Allotment date
24 Dec'24
Refund date
26 Dec'24
Listing
27 Dec'24
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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