Mamata Machinery IPO to open on Dec 19; price band at Rs 230-243 a share

Packaging machinery manufacturer Mamata Machinery Ltd on Friday fixed a price band of Rs 230-243 per share for its Rs 179 crore initial share sale opening for public subscription on December 19.

The public issue will conclude on December 23 and the bidding for anchor investors will open for a day on December 18, the company announced.

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.

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.

Additionally, 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.

At the upper end of the price band, the company's market capitalisation has been pegged at close to Rs 600 crore.

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.