Sat Dec 21 01:13:11 UTC 2024: ## Mamata Machinery IPO Oversubscribed, Trading at 82% Premium in Grey Market

**Mumbai, December 26, 2024** – The Initial Public Offering (IPO) of Mamata Machinery Limited, a manufacturer of packaging machinery, has been massively oversubscribed, exceeding expectations and creating significant buzz in the grey market. The IPO, which closed on December 23rd, saw a total subscription of 30.6 times its issue size. Individual investor segments were even more enthusiastic, with retail investors oversubscribing by 4317% and qualified institutional buyers (QIBs) by 288%.

The company offered shares in a price band of ₹230 to ₹243. However, the grey market premium (GMP) has soared to ₹200, representing an 82% premium over the upper price band. This suggests a potential listing price of ₹443, significantly higher than the IPO price.

Choice Broking has recommended a “SUBSCRIBE” rating for the IPO, citing Mamata Machinery’s expertise in manufacturing and exporting plastic bag and pouch making machines, packaging machines, and extrusion equipment. The brokerage firm highlighted the company’s consistent performance in recent years, expansion into international markets, and strong long-term growth potential. While acknowledging potential risks such as reliance on the FMCG sector and foreign exchange fluctuations, the firm believes the valuation is attractive compared to its peers. The company projects an FY24 EPS of ₹14.7 and an EV/Sales multiple of 2.6x, resulting in a P/E multiple of 16.6x at the upper price band.

Despite the positive outlook, investors are cautioned to exercise due diligence and consider the inherent risks associated with the market before investing. The information provided here is based on publicly available data and brokerage reports and does not constitute financial advice.

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