Packaging machinery manufacturer Mamata Machinery Ltd has recently made headlines with its highly successful initial public offering (IPO). The IPO, which raised a total of Rs 179 crores, saw an overwhelming response from investors, with the subscription rate reaching a staggering 194.95 times on the final day of the share sale.
The company received bids for a total of 1,00,94,81,802 shares, far surpassing the 51,78,227 shares that were on offer. This strong demand was reflected across all investor categories, with Non-Institutional Investors showing a subscription rate of 274.38 times, Qualified Institutional Buyers at 235.88 times, and Retail Individual Investors at 138.08 times.
Mamata Machinery Ltd, based in Gujarat, specializes in providing end-to-end manufacturing solutions for the packaging industry. The company’s machines, sold under the brand names ‘Vega’ and ‘Win’, cater to the entire flexible packaging market value chain.
The successful IPO, which had a price range of Rs 230-243 per share, saw the company raise over Rs 53 crores from anchor investors prior to the share sale. The offering, which was entirely an Offer-for-Sale (OFS) by promoters, will not result in any proceeds going to the company itself, with all funds going to the selling shareholders.
The company stated that the objective of going public is to gain the benefits of listing its shares on the stock exchanges, which include increased visibility, brand image, shareholder liquidity, and establishment of a public market for the shares.
Beeline Capital Advisors acted as the sole book-running lead manager to the IPO, with the equity shares set to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Overall, Mamata Machinery’s successful IPO highlights the strong investor interest in the packaging industry and the company’s potential for growth and expansion in the market. With its cutting-edge manufacturing solutions and established brand names, Mamata Machinery is well-positioned for future success in the packaging sector.
Sources:
1. NSE data
2. Company Press Release
3. Financial news websites
