| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 230 to ₹ 243 | 61 | 19th Dec, 2024 – 23rd Dec, 2024 | ₹ 179.39 Cr |
About Mamata Machinery Ltd IPO
Established in 1979, Mamata Machinery Ltd. is a key player in the global packaging machinery market, specializing in the manufacturing and export of plastic bag and pouch-making machines, packaging machinery, and extrusion equipment. The company offers end-to-end solutions for the flexible packaging industry, catering to various sectors, including FMCG, Food & Beverage, e-commerce, and garment packaging. The company also provides after-sales service to customers. The company consistently endeavour to expand product offerings and solutions to customers. As part of a focus on innovation, they have launched new and advanced machines from time to time. In 1989, Mamata Machinery started its commercial operation as a manufacturer of microprocessor-controlled bag-making machines. They evolved periodically by introducing various categories of packaging applications. In 1997, they entered the film extrusion machinery business. 1998, they started exporting bag and pouch-making machines to the European Union. They began operations in the United States through a wholly-owned subsidiary to further expand their reach. The company conducts business outside India through its wholly owned subsidiary, Mamata Enterprise Inc., supplying machines to over 75 countries. The company derives a significant portion of its revenue from exports (65.3% in FY24), with the USA being the major export market (19.2% in FY24). The company’s top 10 customers account for ~30% of the total revenue, reflecting a diversified customer base. As the company has an extensive global sales and distribution network with a customer base spanning over 75 countries, compromising both end customer brands and conversion players, it has become one of the leading exporters of machinery and equipment for bag and pouch-making machinery, packaging machinery and co-extrusion blown film machinery and attachment.
Objective of the Mamata Machinery Ltd IPO
The net proceeds from the fresh issue will be used towards the following purposes:
- The issue is completely offer for sale;
- General corporate purposes.
Rationale To Mamata Machinery Ltd IPO
Leading exporter of machinery and equipment is well positioned to leverage growth opportunities
Mamata Machinery is a leading exporter of machinery and equipment to produce plastic bags and pouches. It has over three decades of presence, strong customer connections, and installations of over 4,500 machineries globally. The company’s comprehensive product offering covers polymer processing using co-extrusion blown film machinery and film converting machinery, pouch and bag-making machinery and attachments. They also make HFFS, PFS, and VFFS multilayer sachet machinery for smaller volume requirements. In each vertical, they offer a variety of machines based on specifications provided by customers. The company sells machines under Vega and Win under various categories. They also provide end-to-end manufacturing solutions for the plastic film-based flexible packaging industry. As of September 30, 2024, they had sold over 4,500 bag and pouch-making machines, packaging machines and co-extrusion blown film machinery and its attachments. The company offers services from concept to commissioning throughout the lifecycle of machinery and equipment. They are also a solutions provider for the plastic film-based flexible packaging industry, with a comprehensive suite of products. Machines manufactured by the company cater to various end-use industries such as FMCG, Food & Beverage, Consumer and particular purpose end applications that serve different industry sectors, among others. This diversified product portfolio and strong customer relationships position Mamata Machinery to leverage future growth opportunities and strengthen its competitive edge in the global market.
Strong focus on quality and innovation which leverages technology to drive business operations
Mamata Machinery is a technology-driven company with a strong focus on quality, product design, and new product development, allowing it to develop products suited to ever-changing market demands. With in-house capabilities for evolving technologies, the company continuously invests in design and development, focusing on innovation to meet emerging customer needs and achieve industrial excellence. Their manufacturing facility in Sanand, Gujarat, features modern testing infrastructure and software, supporting their development efforts. With a strong focus on quality, innovation-led research and development, the company can offer industry 4.0 certified machines category recognized for significant advancements in machine learning. The company machines can connect to the internet and be remotely controlled, diagnosed & serviced by a service engineer using software. As of September 30, 2024, they had over 87 engineers and application experts adept at electronics, mechanical, software and design applications. The company’s continuous efforts at innovation has resulted in the development of new technologies for new and improved products and the new and improved processes related to them. The company’s innovations have been protected by patents or designs over the years under the Indian intellectual property law regime to secure exclusive rights and gain an edge over competitors, which helps the business grow further and augment its market position. The company is committed to creating new and valuable innovations through research and development initiatives to leverage best-in-class technology that positively drives business globally by providing high-quality machines and other innovative products at competitive prices, which will drive sustained business growth and market leadership.
Valuation of Mamata Machinery Ltd IPO
Mamata Machinery is strategically focused to strengthen relationships with existing customers and expand its product offerings across geographies to drive growth. The company plans to win new customers and explore emerging opportunities within its existing 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 Machinery has a strong track record of innovation, evidenced by multiple patents and a focus on customization. On the financial front, the company’s Rev/EBITDA/PAT grew at a CAGR of 10.9%/25.6%/29.0%, respectively, during FY22-24 period. 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. The issue is valued at a P/E of 16.6x on the upper price band based on FY24 earnings. 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.
What is the Mamata Machinery Ltd IPO?
Mamata Machinery IPO is a book built issue of Rs 179.39 crores. The issue is entirely an offer for sale of 0.74 crore shares. Login to your account now.
How to apply for the Mamata Machinery Ltd IPO through StoxBox?
To apply for the Mamata Machinery Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Mamata Machinery Ltd IPO open?
Mamata Machinery Ltd IPO is opening on 19th December 2024. Apply Now
What is the lot size of the Mamata Machinery Ltd IPO?
The Lot Size of Mamata Machinery Ltd IPO is 61 equity shares . Login to your account now
When is the Mamata Machinery Ltd IPO allotment date?
The allotment Date for Mamata Machinery Ltd IPO is 24th December 2024. Login to your account now.
When is the Mamata Machinery Ltd IPO listing date?
The listing Date for Mamata Machinery Ltd IPO is 27th December 2024. Login to your account now
What is the minimum investment required for the Mamata Machinery Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,823. Login to your account now
What is the maximum investment allowed for the Mamata Machinery Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 192,699. Login to your account now
What are the risks associated with investing in the Mamata Machinery Ltd IPO?
- The business’s profitability depends on the availability and cost of raw materials. Any disruptions in timely and adequate supply or volatility in the prices of raw materials may adversely impact the company’s profitability. The parts and components sourced from third parties account for over 90% of the total material purchase cost.
- The company has also yet to enter long-term contracts to supply raw materials. The company’s business heavily depends on the performance of the FMCG, Food and Beverage, and Consumer industries, as these are the end-use industries for the company’s machinery. Any disruptions in these end-use industries will impact the company’s revenues and profitability.
- Partial or complete bans on packaging material by central or state Governments regarding the company’s products may severely impact the business.
When will the Mamata Machinery Ltd IPO shares be credited to my Demat account?
The Mamata Machinery Ltd IPO be credited to the account on allotment date which is 26th December 2024. Login to your account now
Where can I find the Mamata Machinery Ltd IPO prospectus?
The prospectus of Mamata Machinery Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Mamata Machinery Ltd IPO?
| IPO Open Date | Thursday, December 19, 2024 |
| IPO Close Date | Monday, December 23, 2024 |
| Basis of Allotment | Tuesday, December 24, 2024 |
| Initiation of Refunds | Thursday, December 26, 2024 |
| Credit of Shares to Demat | Thursday, December 26, 2024 |
| Listing Date | Friday, December 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 23, 2024 |
