Multibagger on Debut! Mamata Machinery shares list at 147% premium vs IPO price

The shares of Mamata Machinery listed at a stellar premium of 146.91% on the exchanges on Friday. The stock debuted at Rs 600 on both the BSE and NSE, against an issue price of Rs 243.

Despite a downtrend in the stock market last week, Mamata Machinery IPO received a massive response from all sets of investors with an overall subscription of 194 times. Analysts believe the demand was on the back of reasonable valuations keeping good listing gains on table for new investors.

Post the listing, Prashanth Tapse of Mehta Equities advised conservative allotted investors to consider booking profits, while long term investors should consider holding it despite knowing short term volatility and risk in the markets.

Also Read: India's IPO storm to continue through 2025 with fundraising expected to cross Rs 2 lakh crore

"For non-allotted investors, we advise to accumulate if we get dips post listing due to profit booking attempts. As industries increasingly shift toward automation and flexible packaging solutions, Mamata’s strong customer relationships, extensive global distribution network and emphasis on after-sales services enable repeat business and foster brand trust, we believe well-positioned to capitalize on this growth," said Tapse.

Since the IPO is entirely an OFS, the proceeds from the offer will go to the selling shareholders.

Incorporated in 1979, Mamata Machinery manufactures and exports plastic bags and pouch making machines, packaging machines and extrusion equipment. It provides end-to-end manufacturing solutions for the packaging industry. Products manufactured using its machines are used across several industries as packaging applications, such as the packing of food and FMCG products.

It primarily sells packaging machinery to direct consumer brands catering to the FMCG, Food, & Beverage Industry and bag and pouch making machines to convertors and service providers who, in turn, mainly cater to the FMCG and consumer industry. MML’s machineries are also utilized in non-packaging applications, such as e-commerce bags and garment packaging bags.

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