Mamata Machinery IPO Allotment: Only One In Every 114 Retail Applicants Managed To Bag Shares
The Rs 179.4-crore IPO saw a total demand of over Rs 24,500 crore.
Shares of Mamata Machinery Ltd. IPO are all set to list at a premium on Friday. The public offering of the plastic containers manufacturer was subscribed by 139.67 times.
The retail portion which received over 48 lakh applications saw only 42,156 applicants successfully get allotted shares of the company, indicating that only one in every 114 applicants managed to bag a lot (or more).
47.70 lakh applications were rendered ineligible after scrutiny by the registrar and transfer agent. The share allotment began from Dec. 24.
The retail category was subscribed 144.11 times, small-NII category was subscribed 387.60 times, large-NII category saw demand of 223.21 times, employee portion was subscribed 154.57 times and QIB was subscribed 235.18 times, before rejections.
The Rs 179.4-crore IPO saw a total demand of over Rs 24,500 crore.
The grey market premium of Mamata Machinery IPO was Rs 260 as of 5:04 a.m., according to InvestorGain. This implies that the shares of the company will likely list at Rs 503 apiece, indicating a 107% premium on the upper end of the price band.
Retail Allotment
As part of the retail category 91.04% (42.39 lakh applications) of bids were for just one lot of shares i.e. 61 shares. This was followed by 4.60% for two lots and 1.53% for three lots. A lot of shares amounts to Rs 14,823.
Small NII Allotment
Small NII category i.e. invested between Rs 2 lakh and Rs 10 lakh was subscribed 378.73 times. The company allocated shares to 430 bidders each getting 854 shares or more.
Large NII Allotment
Large NII category i.e. invested above Rs 10 lakh was subscribed 219.76 times. The company allocated shares to 860 bidders each getting at least 4,148 shares. This segment saw 91.06% of the large NII bidding for 68 lots.
Mamata Machinery Business
Mamata Machinery started commercial operations as a manufacturer of bag-making machines in 1989. It sells packaging machinery to direct consumer brands, catering to the fast-moving consumer goods, food and beverage industry, and bag and pouch making machines to converters and service providers who, in turn, mainly cater to the FMCG and consumer industry.
Balaji Wafers Pvt., Chitale Foods, Gits Food Products Pvt. and Hershey India Pvt. are some of its customers. The company sells its machines under the brand name Vega and Win.
In the first quarter of the current fiscal, the company reported an operating loss of Rs 30 lakh despite having an inventory writeback of Rs 21 crore. As of June 30, the company has a cash balance of Rs 7.6 crore, including bank balances.
