Mamata MAachinery IPO: A Profitable Opportunity for Retail and Institutional Investors
Mamata Machinery IPO: Strong Fundamentals and Global Reach
BILKULONLINE
Ahmedabad, Dec 17: Mamata Machinery Limited, a leading manufacturer and exporter of packaging machinery, is set to launch its Initial Public Offering (IPO) on December 19, 2024.
Mahendra Patel, Chairman and MD, Chandrakant Patel, Joint MD, Varun Patel, Vice President, Apurva Kane, CEO, Dipak Modi, CFO and CA Yogesh Jain from Beeline Advisors Pvt ltd were present in Ahmedabad on Monday to interact with the media.Â
CM & MD Mahendra Patel and CEO Apurva Kane explained the details of the IPO of the company and answered the queries of the media.
Established in 1979, the company specializes in producing machines for plastic bag and pouch making, extrusion equipment, and other packaging solutions. With a robust presence in over 75 countries, international offices in the USA, and a strong client base spanning FMCG, Food, and Beverage industries, Mamata Machinery has steadily grown its revenue and profitability.
This IPO offers investors an opportunity to invest in a company with proven operational efficiency, consistent financial performance, and a strong foothold in the global packaging market.
Key IPO Details
Issue Type: Book Built Issue
Issue Size: ₹179.39 crores (Offer for Sale of 0.74 crore shares)
Price Band: ₹230 to ₹243 per share
Lot Size:
Retail Investors: 61 shares (₹14,823 minimum investment)
Small NII (sNII): 14 lots (₹2,07,522)
Big NII (bNII): 68 lots (₹10,07,964)
IPO Opening Date: December 19, 2024
IPO Closing Date: December 23, 2024
Allotment Finalization: December 24, 2024
Listing Date (Tentative): December 27, 2024
Stock Exchanges: BSE, NSE
Lead Manager: Beeline Capital Advisors Pvt Ltd
Registrar: Link Intime India Private Ltd
About Mamata Machinery Limited
Incorporated in April 1979, Mamata Machinery Limited specializes in manufacturing and exporting machinery for plastic bag and pouch making, packaging, and extrusion. The company has a strong global presence, with exports to over 75 countries and international offices in Florida and Illinois, USA. Mamata also operates through sales agents across Europe, South Africa, and Asia.
The company serves industries such as FMCG, Food, and Beverages with a prestigious client portfolio that includes Balaji Wafers, Dass Polymers, Sunrise Packaging, and Emirates National Factory for Plastic Ind LLC.
Financial Performance
Revenue and Profit Growth
Mamata Machinery has demonstrated steady revenue and profit growth over the past three years:
Revenue: Grew from ₹196.57 crores (FY22) to ₹241.31 crores (FY24), marking a CAGR of 10.9%.
Profit After Tax (PAT): Increased from ₹21.70 crores (FY22) to ₹36.13 crores (FY24), achieving a CAGR of 29%.
FY23 to FY24 Growth: Revenue rose by 14.84%, and PAT surged by 60.52%, highlighting operational efficiency.
Return Ratios
Average ROE (FY22-FY24): 23.4%
Average ROCE (FY22-FY24): 21.8%
IPO Objective
The IPO is a complete Offer for Sale (OFS) by promoters and existing shareholders, meaning the company will not receive any proceeds. The funds raised will be utilized by selling shareholders, post deduction of IPO-related expenses.
Investment Highlights
Steady Financial Performance: Strong growth in revenue and profitability over the years, with impressive return ratios (ROE and ROCE).
Global Presence: Exports to over 75 countries with international offices in the USA and active sales agents in Europe, South Africa, and Asia.
Established Clientele: Trusted by leading companies in the FMCG, Food, and Beverage industries.
Market Leadership: Positioned as a preferred provider of innovative packaging machinery.
Risks to Consider
Complete OFS: No proceeds will benefit the company directly, as all funds are allocated to selling shareholders.
Industry Dependency: Heavy reliance on the FMCG, Food, and Beverage sectors for revenue generation.
Competitive Landscape: Intense competition in both domestic and global markets.
Conclusion
Mamata Machinery’s strong financials, global reach, and consistent growth make it a promising investment opportunity for long-term investors seeking exposure to the packaging machinery sector. However, the reliance on an OFS structure and specific industry dependencies warrant careful consideration.
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