‘37.75x oversubscribed’: Mamata Machinery IPO sparks frenzy ahead of listing

Mamata Machinery Limited’s IPO has drawn significant attention, with bidding for the public offering starting on December 19 and set to close at 5:00 PM on December 23. Investors have shown overwhelming interest, with the IPO already oversubscribed 37.75 times within the first two days.

The retail portion of the book build issue recorded a subscription rate of 51.03 times, while the Non-Institutional Investor (NII) segment was subscribed 50.23 times. Meanwhile, the Qualified Institutional Buyer (QIB) category saw bids 4.74 times the available shares. On the grey market, Mamata Machinery’s Grey Market Premium (GMP) reached ₹261 today, signaling strong demand despite recent market fluctuations.

The GMP, paired with the IPO’s price band of ₹230-₹243, suggests promising short-term returns for investors. Grey market indicators hint that early allottees could potentially double their investments upon listing.

Analysts have given the IPO a “SUBSCRIBE” rating, citing the company’s strong market positioning and growth strategy. Prathamesh Masdekar, Research Analyst at StoxBox, highlighted Mamata Machinery’s focus on leveraging regulatory changes, such as single-use plastic restrictions, by offering recyclable packaging solutions. “The company’s strong international presence and innovative portfolio position it well for sustained growth,” Masdekar said.

Canara Bank Securities echoed similar sentiments, emphasizing the company’s technological edge, robust financials, and export-oriented operations. They noted that Mamata Machinery’s proactive focus on recyclable packaging and geographic expansion into the Middle East and Africa are promising growth drivers. “We recommend the issue to SUBSCRIBE for long-term gains,” Canara Bank Securities stated.

The IPO allotment date is expected to be December 24, 2024, with the listing likely on December 27.