Mamata Machinery Listing: The packaging machinery manufacturer made a stellar debut on the Dalal Street on Friday. The initial public offering (IPO) witnessed a robust triple-digit listing of 147 per cent on the bourses.
While the last week of December proved out to be quite busy for the primary market, the IPO bazaar managed to witness multiple strong listings
Mamata Machinery Listing: The packaging machinery manufacturer made a stellar debut on the Dalal Street on Friday. The initial public offering (IPO) witnessed a robust triple-digit listing of 147 per cent on the bourses.
The strong investor sentiment was already visible during the bidding period of Mamata Machinery's initial share sale. Even in the unofficial market, the shares of the company were trading at a grey market premium (GMP) of 107 per cent, signalling optimism among investors.
At 10:55 am, the shares of Mamata Machinery were trading at Rs 630 price level, up by nearly 160 per cent on the National Stock Exchange.
The company's book-built issue was worth Rs 179.39 crore. The IPO comprised solely an offer for sale (OFS) of 0.74 crore shares, with no fresh issue. The Ahmedabad-based company recorded a profit after tax (PAT) of Rs 36.13 crore, up from Rs 22.51 reported in FY23. In Q1FY25, Mamata Machinery's profit stood at 0.22 crore. The machinery manufacturer reported a revenue of Rs 241.31 crore in FY24, a minor uptick from Rs 210.13 crore recorded in FY23.
While the last week of December proved out to be quite busy for the primary market, the IPO bazaar managed to witness multiple strong listings. However, the optimism remained at its peak for Mamata Machinery as analysts gave a thumbs up to the IPO, citing the company's global presence and consistent revenues as major factors.
"The IPO witnessed an overwhelming response, with a massive subscription. The company's strong global presence, including a manufacturing unit in the US, and its consistent growth in revenue and profit underscore its robust fundamentals. The IPO's reasonable valuation further enhances its appeal, said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.
However, D-street experts have cautioned against overexuberance and advised investors to consider profit-booking or holding onto their shares while closely monitoring the company's performance.
"Those who took part in the initial public offering (IPO) may book part profit and choose to hold onto their shares while keeping a careful eye on the company's performance and the state of the market, as well as maintaining a stop loss at the 550," Nyati further added.