Mamata Machinery shares listed with a high premium of 147 percent on the NSE over its IPO price on December 27, following a whopping subscription of 194.95 times to its Rs 179.39-crore initial public offering (IPO).
The packaging machinery manufacturer Mamata Machinery Ltd stock listed at Rs 600 per share on the NSE over its issue price of Rs 243 apiece, a strong premium of 146.91 percent. The company's market valuation post listing of shares stood at Rs 1,476.47 crore.
On the BSE, the shares of the company were listed at Rs 600 per share.
The IPO was priced in the range of Rs 230-243 per share. The Gujarat-based company's initial share sale was 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.
Mamata Machinery: Should you buy, sell or hold?
Mamata Machinery share listing was far better than the expectations in the grey market. On the day of listing, the shares of the company were commanding a GMP of around 107 percent in the unofficial market.
The company stated that the objective of the initial share sale is to gain the advantages of listing the equity shares on the stock exchanges, anticipating 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.
Analysts are optimistic about the company's growth prospects, citing its extensive product portfolio, global footprint, and leadership in packaging machinery technology. They recommend holding Mamata Machinery shares for the long term on the back of the company’s investments in research and development (R&D) and continuous innovation.
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Prathamesh Masdekar, Research Analyst at StoxBox, suggests holding the stock due to Mamata Machinery’s market presence. "Investors allotted shares should hold from a medium- to long-term perspective.
The company’s strong international presence, with manufacturing facilities in India and the US, coupled with its innovative capabilities and focus on customisation, enhances its growth potential," he said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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