Mamata Machinery IPO sees 16.5x subscription on Day 1; retail, employees lead

Mamata Machinery IPO sees 6.5x subscription on Day 1 so far; retail, employees lead

Packaging machinery manufacturer Mamata Machinery Ltd's IPO saw impressive subscription numbers on the opening day (December 19).

At day's close, the Rs 179-crore IPO saw overall 16.48 times subscription with bids made for 8.53 crore shares as against 51.78 lakh shares on offer.

The retail portion saw stellar participation with nearly 24 times bids for the 25.7 lakh shares on offer. The employees portion got booked 28.7 times for the 35,000 shares on offer

Non Institutional Investors made nearly 19 times subscription for the 11 lakh shares on offer. Meanwhile, the Qualified Institutional Buyers (QIBs) subscribed 151% of the 14.69 lakh shares on offer.

The public issue will conclude on December 23.

The company has mobilised Rs 53.56 crore from seven institutional investors via anchor book on December 18, a day prior to the issue opening.

3P India Equity Fund is the largest anchor investor in the company, buying 5.48 lakh shares worth Rs 13.33 crore, while Authum Investment, Winro Commercial, Subhkam Ventures, and Chartered Finance & Leasing picked 2.97 lakh shares worth Rs 7.23 crore each.

The Gujarat-based company's initial share sale is entirely an Offer For Sale (OFS) of 73.82 lakh equity shares, by promoters, worth Rs 179.38 crore at the upper end of the price band.

Those selling shares under the OFS are -- Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP.

Since it's an OFS, the company will not receive any proceeds from the public issue, and the entire fund will go to the selling shareholders.

Mamata Machinery provides end-to-end manufacturing solutions for the packaging industry. The company sells its machines under the brand name 'Vega' and 'Win'. It offers a comprehensive range of products serving the entire flexible packaging market value chain covering.

Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional buyers. 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.