Dream debut for Mamata Machinery; shares surge whopping 159%
New Delhi: Shares of packaging machinery manufacturer Mamata Machinery Ltd made a remarkable market debut on Friday and ended with a huge premium of over 159 per cent against the issue price of Rs 243.
On the BSE, shares of the firm listed at Rs 600, a jump of 146.91 per cent. It zoomed 159.23 per cent to settle at Rs 629.95 — the upper circuit limit.
The stock began the trade at Rs 600 on the NSE. It ended at Rs 630 apiece, rallying 159.25 per cent, hitting the upper circuit limit.
The firms’ market valuation stood at Rs 1,550.17 crore.
In terms of volume, 2.96 lakh shares of the firm were traded on the BSE and 26.46 lakh shares exchanged hands on the NSE during the day.
The initial public offering of Mamata Machinery Ltd fetched a whopping 194.95 times subscription on the final day of share sale on Monday.
The Rs 179-crore initial share sale had a price 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.
Since it was an OFS, the company will not receive any proceeds from the public issue, and the entire fund will go to the selling shareholders.
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.
The company anticipates 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.
Mamata Machinery provides end-to-end manufacturing solutions for the packaging industry. The company sells its machines under the brand names ‘Vega’ and ‘Win’. It offers a comprehensive range of products, serving the entire flexible packaging market value chain.
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