The IPO of Mamata Machinery was over-subscribed 3 times within hours of opening on December 19. The IPO will close on December 23. The company aims to raise Rs 179.39 crore through selling 74 lakh shares of promoters and other selling shareholders. The retail portion was booked 4.88 times, the employee category 4.35 times, and the NII portion 2.99 times. However, the QIBs haven’t jumped in yet.
Mamata Machinery IPO GMP
The shares of the company were trading at a premium of 82% in the grey market. This suggests that the stock might list around a price of Rs 443 to the issue price. Market participants keep an eye on the GMP to track listing gains.
Mamata Machinery IPO details
The company will likely finalize the allotment of shares on December 24. The listing of IPO on the bourses – NSE and BSE – is expected to take place on December 27. The IPO price band was fixed from Rs 230 to Rs 243 per equity share. A retail buyer can apply for a minimum of 61 shares, comprising 1 lot, which amounts to Rs 14,823. There are different lot sizes for small and big NIIs. A small NII can apply for 14 lots (854 shares) and a big NII 68 lots (4,148 shares). The issue includes a reservation of up to 35,000 shares for employees, offered at a discount of Rs 12 to the issue price.
Mamata Machinery IPO review
“At the upper price band, the company is valued at a P/E of 16.6x with a market cap of Rs 597.6 crore crore post issue of equity shares and return on net worth of 27.4% based on FY24. On the valuation front, we believe that the company is fairly priced compared to its peers. Therefore, we recommend a “Subscribe” rating to the IPO,” said Anand Rathi Research in an IPO note.
Mamata Machinery IPO lead manager and registrar
Beeline Capital Advisors is the book-running lead manager of the IPO, while Link Intime India is the registrar for the issue.
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