The initial public offering of Mamata Machinery is stealing the limelight with all categories of investors showing interest in it. The issue has been subscribed 37.75 times, with one day still to go.
The Gujarat-based company hit the capital market on Thursday with a ₹179.38-crore initial public offering at a price band of ₹230-243. The IPO is entirely an offer-for-sale of 73.82 lakh equity shares by the promoters Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP.
Half of the issue is reserved for qualified institutional buyers, while 35 per cent is reserved for retail investors, and the remaining 15 per cent for non-institutional buyers. The minimum lot size for an application is 61 shares.
While the QIB portion was subscribed 4.74times, the most aggressive bidders were retail investors (51.03 times), closely followed by NIIs (50.23 times). The company has reserved 35,000 shares for eligible employees and this window has been subscribed 54.31 times.
On Wednesday, the packaging machinery manufacturer raised over ₹53 crore from anchor investors as part of the IPO. Mamata Machinery has allotted 22.04 lakh shares to seven funds – 3P India Equity Fund, Authum Investment and Infrastructure, Winro Commercial (India) Ltd, Subhkam Ventures, Chartered Finance and Leasing, Belgrave Investment Fund, and Aarth AIF – at ₹243 apiece.
Since the entire issue is an OFS, the company will not receive any proceeds, and the entire amount will go to the selling shareholders.
The objective of the initial share sale is to gain the benefits of listing its equity shares on the stock exchanges. Additionally, the company anticipates that listing will boost its visibility and brand image, provide liquidity to its shareholders, and establish a public market for the shares.
Mamata Machinery provides end-to-end manufacturing solutions for the packaging industry. The company sells its machines under the brand names ‘Vega’ and ‘Win’. It offers a comprehensive range of products, serving the entire flexible packaging market value chain.
Beeline Capital Advisors is the sole book-running lead manager to the issue. The equity shares are expected to be listed on December 27 on the BSE and NSE
