Mamata Machinery files IPO papers with Sebi; issue entirely OFS

The objective of the initial share sale is to gain the advantages of listing the equity shares on the stock exchanges, said Mamata Machinery.

Gujarat-based packaging equipment manufacturer Mamata Machinery Ltd has submitted draft documents to the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO).

According to the draft red herring prospectus (DRHP) filed with the markets regulator, the company's IPO consists entirely of an offer for sale (OFS) of 73.82 lakh equity shares by its promoters.

As it is an OFS, Mamata Machinery Ltd will not directly receive any proceeds from the public issue.

Instead, all funds raised will be directed to the selling shareholders, including Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP, who will be divesting their shares through the IPO.

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The company, in its draft IPO papers filed, said that the objective of the initial share sale is to gain the advantages of listing the equity shares on the stock exchanges.

Additionally, it anticipates that listing the equity shares will boost its visibility and brand image, provide liquidity to its shareholders, and establish a public market for the equity shares.

Mamata Machinery specialises in manufacturing and exporting plastic bags, pouch-making machines, packaging machines, and extrusion equipment, providing complete manufacturing solutions for the packaging industry.

Its machines are marketed under the brand names 'Vega' and 'Win'. As of May 2024, Mamata Machinery has installed over 4,500 machines across 75 countries globally.

The company offers a wide array of products catering to the entire flexible packaging market value chain. Beeline Capital Advisors Private Limited serves as the sole Book Running Lead Manager to the issue (BRLM).