Mamata Machinery Limited, a well-established name in the packaging solutions industry, is launching its IPO to raise ₹179.39 crore. This IPO is entirely an Offer for Sale (OFS), meaning the proceeds will go to the existing shareholders, not the company.
For retail investors looking at niche players with strong fundamentals, this IPO is generating a lot of interest. Let’s break down everything you need to know about Mamata Machinery IPO in simple terms.
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A quick look at Mamata Machinery’s journey
Founded in 1979, Mamata Machinery is a leading manufacturer and exporter of plastic bag, pouch, and packaging machines. The company operates globally, with offices in India and the USA and a presence in 75 countries.
Their products are critical in industries like FMCG, Food & Beverages, and even e-commerce packaging. Over the years, Mamata Machinery has built strong relationships with renowned clients like Balaji Wafers, Hershey India, and Dass Polymers.
With over 4,500 machines installed worldwide, Mamata Machinery stands out for its innovative approach—holding 4 patents and 2 more under review.
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Why is Mamata Machinery going for an IPO?
The company’s IPO is not about raising funds for growth but for:
- Allowing promoters and existing shareholders to sell part of their holdings.
- Achieving the benefits of a public listing like visibility, liquidity, and market credibility.
While the company itself will not receive funds, this IPO highlights confidence in Mamata Machinery’s growth prospects.
Current status of Mamata Machinery
Mamata Machinery has demonstrated consistent growth in both revenue and profits over the last three financial years. According to the management, their performance typically leans toward the second half of the year, so annualised Q1 data could be misleading.
The company remains confident about its steady growth trends, supported by:
- Innovation-driven machinery.
- Strong after-sales services.
- Expanding global presence.
Financial performance of Mamata Machinery
Here’s a quick snapshot of the company’s financials:
| Period | Revenue (₹ Cr) | Net Profit (₹ Cr) | PAT Margin | Net Worth (₹ Cr) |
| FY22 | 196.57 | 21.7 | 11.29% | 103.56 |
| FY23 | 210.13 | 22.51 | 11.20% | 127.38 |
| FY24 | 241.31 | 36.13 | 15.27% | 131.88 |
| Q1 FY25 | 29.19 | 0.22 | 0.79% | 132.82 |
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Key financial ratios:
- Return on Equity (ROE): 27.76%
- Return on Capital Employed (ROCE): 31.29%
- Debt-to-Equity Ratio: 0.09
Mamata Machinery IPO details
Here are the key details you need to know:
| Particulars | Details |
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Listing Date | December 27, 2024 (Tentative) |
| Price Band | ₹230 to ₹243 per share |
| Issue Size | ₹179.39 crore |
| Offer for Sale | 73.82 lakh shares |
| Lot Size | 61 shares (₹14,823 minimum) |
| Anchor Investor Date | December 18, 2024 |
| Listing Exchanges | BSE, NSE |
| Lead Manager | Beeline Capital Advisors Pvt Ltd |
| Registrar | Link Intime India Pvt Ltd |
Shareholding pattern pre- and post-IPO
| Shareholder Category | Pre-IPO (%) | Post-IPO (%) |
| Promoters | 92.45% | TBD |
| Public | 7.55% | TBD |
Should you invest in Mamata Machinery IPO?
Advantages of investing
- Consistent growth: The company has shown steady revenue and profit growth, with a 60.52% increase in PAT in FY24.
- Global market presence: Over 75 countries served with robust operations in India and the USA.
- Healthy financials: Strong ROE of 27.76% and minimal debt-to-equity ratio of 0.09.
- Innovation-driven: 4 patents granted, showcasing a commitment to innovation and quality.
Disadvantages to consider
- No fresh funds for growth: Since it’s a pure OFS, no funds will go to the company.
- Seasonal performance: Revenues are historically higher in the second half, which may affect short-term numbers.
- Market dependency: The company relies on global markets, which can be impacted by external economic factors.
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Bottomline
Mamata Machinery IPO offers investors an opportunity to be part of a globally recognised packaging machinery leader. With solid financial performance, a focus on innovation, and an attractive P/E ratio of 16.59x (compared to the industry average of 43.90x), the IPO appears reasonably priced.
For those with a medium to long-term horizon, Mamata Machinery IPO could be a promising addition to their portfolio.
