Mamata Machinery IPO sees 195 times subscription on final day, GMP in triple digits

Mamata Machinery IPO

Packaging machinery maker Mamata Machinery's initial public offering garnered healthy interest from investors, getting subscribed 194.95 times on the final day of bidding, i.e. December 23. In fact, this was the highest subscription number amongst IPOs launched since October.

The company opened its Rs 179-crore initial share sale for subscription on December 19 and since then remained on investors' radar despite bear attack on the equity markets. Investors bid for 100.94 crore equity shares against the offer size of 51.78 lakh shares, the subscription data on the exchanges showed.

Non-institutional investors were at the top to support the issue, buying 274.38 times their reserved portion. Qualified institutional buyers as well as retail investors also looked aggressive, subscribing 235.88 times and 138.08 times their allotted quotas.

Employees applied for 53.64 lakh shares, higher by 153.27 times their reserved portion of 35,000 shares. They will receive these shares at a discount of Rs 12 to the final issue price.

The share allotment of Mamata Machinery IPO shares will be finalised by December 24, while investors can start trading in shares on the bourses, effective December 27.

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Given the robust subscription, the demand for Mamata Machinery IPO shares in the grey market remained strong, which were available at around 107 percent premium over the upper price band, the market observers said. It is an unofficial market wherein IPO shares can be bought and sold till the listing on bourses.

With two manufacturing facilities (one in India and one in USA), the Gujarat-based company that manufactures and exports plastic bags and pouch-making machines, packaging machines and extrusion equipment approached the primary market to carry out an initial public offering which consists of solely an offer-for-sale by promoters, and list shares on the bourses. This means the company will not receive any money from the IPO, and all the public issue funds will go to promoters.

The price band for the offer was Rs 230-243 per share.

Balaji Wafers, Chitale Foods, Laxmi Snacks, Gits Food Products, Dass Polymers, Jflexy Packaging, Euphoria Packaging, Om Flex India, and Ganges Jute are some of its customers.