Mamata Machinery share price had a remarkable debut on the stock exchanges today. The shares opened at ₹600 each on both the NSE and BSE, reflecting an increase of 146.91% compared to the issue price of ₹243. Following this strong opening, the stock reached a 5% upper circuit limit on the exchanges. As of 11:24 IST, Mamata Machinery share price today was trading at ₹629.95 on BSE and ₹630 on NSE.
The initial public offering of Mamata Machinery Ltd, which specializes in manufacturing packaging machinery, saw an impressive subscription rate of 194.95 times on the final day of the share sale on Monday. The segment reserved for Non-Institutional Investors experienced an extraordinary subscription rate of 274.38 times, while Qualified Institutional Buyers (QIBs) subscribed at a rate of 235.88 times. The portion allocated for Retail Individual Investors (RIIs) achieved a subscription rate of 138.08 times.
This ₹179-crore IPO has a price range set between ₹230 and ₹243 per share. On Wednesday, Mamata Machinery Ltd announced that it had raised over ₹53 crore from its anchor investors. The company offers comprehensive manufacturing solutions for the packaging industry and markets its products under the brand names ‘Vega’ and ‘Win’, delivering a wide range of offerings that support the entire flexible packaging market value chain.
The initial public offering (IPO) is solely made up of an offer for sale (OFS), featuring up to 7.38 million shares from both promoters and existing shareholders. If set at the upper price band, the total worth of the offering will amount to ₹179.39 crore. The company’s promoters comprise Mahendra Patel, Chandrakant Patel, Nayana Patel, Bhagvati Patel, along with Mamata Group Corporate Services.
Mamata Machinery share price outlook
Shivani Nyati, who leads the Wealth division at Swastika Investmart Ltd, mentioned that the IPO’s attractive valuation adds to its appeal. The company had an impressive stock market launch, debuting at a notable 147% higher than its issue price of ₹243. Investors who participated in the initial public offering (IPO) might consider taking some profits while also deciding to retain their shares, all the while vigilantly monitoring the company’s performance and market conditions and setting a stop loss at ₹550.
Additionally, Prathamesh Masdekar, a Research Analyst at StoxBox, noted that Mamata Machinery has garnered significant interest from investors, with its IPO being oversubscribed by 194.95 times and anticipated to launch with a 107% premium over the upper price band. The company is strategically focused on enhancing relationships with current customers and broadening its product range across different regions to foster growth. To attract new customers and seize emerging opportunities within its product lines, the company plans to develop offerings that align with customer preferences.
By improving capacity utilization and boosting production volumes, the company aims to satisfy rising customer demand while enhancing productivity and lowering costs. Consequently, we advise that investors who received shares maintain their holdings from a medium to long-term viewpoint.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
