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Mamata Machinery Ltd

Mamata Machinery Ltd IPO

Status: Upcoming

Overview

IPO date
19 Dec 2024 to 23 Dec 2024
Face value
₹ 0 per share
Price
₹ 230 to ₹243 per share
Issue Size
7382340 shares
(aggregating up to ₹ 179.39 Cr)
Allotment Date
24 Dec 2024
Listing at
NSE
Issue type
Book Building
Sector
Engineering

Objectives of Mamata Machinery Ltd IPO

Initial public offering of up to 7,382,340 equity shares of face value of Rs. 10 each ("Equity Shares") of Mamata Machinery Limited (the "Company" or the "Issuer") for cash at a price of Rs. [*] per equity share ("Offer Price") aggregating up to Rs. [*] crores (the "Offer") comprising an offer for sale of up to 534,483 equity shares aggregating up to [*] crores by Mahendra Patel, up to 1,967,931 equity shares aggregating up to [*] crores by Nayana Patel, up to 1,227,042 equity shares aggregating up to [*] crores by Bhagvati Patel, up to 2,129,814 equity shares aggregating up to [*] crores by Mamata group corporate services llp and up to 1,523,070 equity shares aggregating up to [*] crores by Mamata management services llp ("Selling Shareholders") (the "Offer for Sale"). The offer includes a reservation of up to 35,000 equity shares aggregating up to Rs. [*] crores (constituting up to [*]% of the post offer paid-up equity share capital), for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute [*]% and [*]%, respectively, of the post-offer paid-up equity share capital of the company. The company in consultation with the book running lead manager, may offer a discount of up to [*]% (equivalent of Rs. [*] per equity share) to the offer price to eligible employees bidding under the employee reservation portion ("Employee Discount"). Price Band: Rs. 230 to Rs. 243 per equity share of face value of Rs. 10 each. The Floor price is 23 times the face value of the equity shares and cap price is 24.30 times the face value of the equity shares. Bid can be made for a minimum of 61 equity shares and in multiples of 61 equity shares.

Objectives of Mamata Machinery Ltd IPO

Initial public offering of up to 7,382,340 equity shares of face value of Rs. 10 each ("Equity Shares") of Mamata Machinery Limited (the "Company" or the "Issuer") for cash at a price of Rs. [*] per equity share ("Offer Price") aggregating up to Rs. [*] crores (the "Offer") comprising an offer for sale of up to 534,483 equity shares aggregating up to [*] crores by Mahendra Patel, up to 1,967,931 equity shares aggregating up to [*] crores by Nayana Patel, up to 1,227,042 equity shares aggregating up to [*] crores by Bhagvati Patel, up to 2,129,814 equity shares aggregating up to [*] crores by Mamata group corporate services llp and up to 1,523,070 equity shares aggregating up to [*] crores by Mamata management services llp ("Selling Shareholders") (the "Offer for Sale"). The offer includes a reservation of up to 35,000 equity shares aggregating up to Rs. [*] crores (constituting up to [*]% of the post offer paid-up equity share capital), for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute [*]% and [*]%, respectively, of the post-offer paid-up equity share capital of the company. The company in consultation with the book running lead manager, may offer a discount of up to [*]% (equivalent of Rs. [*] per equity share) to the offer price to eligible employees bidding under the employee reservation portion ("Employee Discount"). Price Band: Rs. 230 to Rs. 243 per equity share of face value of Rs. 10 each. The Floor price is 23 times the face value of the equity shares and cap price is 24.30 times the face value of the equity shares. Bid can be made for a minimum of 61 equity shares and in multiples of 61 equity shares.

Mamata Machinery Ltd IPO Strategy

  • Leverage our industry-leading capabilities by continuing to diversify our customer base and increase penetration in new geographies.
  • Continue to innovate across product categories, catering to wider end-applications.
  • Reduce operating costs and improve operational efficiencies.

About Mamata Machinery Ltd

Mamata Machinery Limited was incorporated as Patel Machinery Private Limited', as a Private Limited Company, dated April 17, 1979 issued by the Registrar of Companies, Gujarat at Ahmedabad. The name of Company was changed to Mamata Machinery Private Limited', and Company received a fresh Certificate of Incorporation dated December 16, 1988 issued by the RoC. Subsequently, Company got converted into a Public Limited Company, and the name was changed to Mamata Machinery Limited' and a fresh Certificate of Incorporation dated June 21, 2024, was issued by the RoC. The Company manufacture and export plastic bags and pouch making machines, packaging machines and extrusion equipment. It provide end-to-end manufacturing solutions for the packaging industry. Products manufactured using the machines are used across several industries as packaging applications, such as the packing of food and FMCG products. The Company primarily sell packaging machinery to direct consumer brands catering to the FMCG, Food, & Beverage Industry and bag and pouch making machines to converters and service providers who, in turn, mainly catering the FMCG and consumer industry. The Company further operate two machine manufacturing facilities, one in India and one in the USA. In India, the manufacturing facility is located on Sarkhej - Bavla Highway, Sanand, Ahmedabad, Gujarat, with a total area of about 20,662 square meters and an in-house electronic department, demo/exhibition centre and a fully equipped paint shop. The manufacturing facility in the USA is located in Bradenton, Florida, and it focuses on product applications, design and development of machines, and customisation of the machines sold in the USA. The Company started commercial operation as a manufacturer of microprocessor-controlled bag making machines in 1989. In 1991, the Company introduced servo technology. It ventured into the Film Extrusion Machinery Business in 1997. To further expand the reach, the Company began its operations in the United States through wholly-owned subsidiary, Mamata Enterprises Inc., in 2003. The Company further moved for expansion by installing over 4,500 machines in over 75 Countries in 2015. The Company further created a milestone by introducing secondary packaging automation in 2022 and launched the vertical form fill seal (VFFS) machine in 2023. The Company is proposing the Initial Public Offer of 7,382,340 Equity Shares through Offer for Sale.

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T&C*

Strengths vs Risks of Mamata Machinery Ltd

Know the pros & cons

Strengths

  • arrowAmong the leading exporter of machinery and equipment for converting machinery, packaging machinery and co-extrusion blown film machinery and attachment.
  • arrowAdvanced manufacturing infrastructure and material knowledge to customize systems and products based on customer specifications.
  • arrowTechnology-driven operations with a strong focus on quality, innovation-led research and development, leading to products that cater to dynamic market requirements.
  • arrowCustomer--centric operations, with an extensive global sales and distribution network.
  • arrowSkilled and experienced management team with committed employee base.

Risks

  • arrowSignificant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary materials could affect its estimated costs, expenditures and timelines which may have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • arrowThe company is heavily dependent on the performance of the FMCG, Food & Beverage and Consumer Industry. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the plastic processing and converting and packaging machines market can adversely impact its business, financial condition, results of operations, cash flows and prospects.
  • arrowFor the three month period ended June 30, 2024 and for the Fiscal 2024, 2023 and 2022 the inventory level days were 880 days, 255 days, 282 days and 291 days respectively, failure to maintain optimal inventory levels could increase its operating costs or lead to unfulfilled customer orders, either of which could have an adverse effect on its business, financial condition, results of operations and prospects.
  • arrowThe company faces significant competitive pressures in its industry, although in Fiscal 2024 the Company emerged as seventh largest exporter of packaging machines from India and contributed 3% of market share of total export of Packaging Machineries. Its inability to compete effectively would be detrimental to the company business and prospects for future growth.
  • arrowAny negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and implement the company growth plans, thereby affecting its financial condition.
  • arrowThe company derives a significant portion of its revenue from operations from sales outside India which contributed an average of 67.64% of total revenue for the previous three Fiscals out of which business through its wholly owned subsidiary contributed to average of 37.03% of total revenue for the previous three Fiscals, any adverse developments in these markets could adversely affect its business.
  • arrowThe company derives a significant portion of its revenue from operations from our top ten customers which represented an average of 30.76% for the previous three Fiscals. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
  • arrowMajority of its business comes from export business. The company revenue from operations from sales located outside India represented 70.42%, 65.28%, 71.52% and 66.13% for three month period ended June 30, 2024 and Fiscal 2024, Fiscal 2023 and Fiscal 2022 respectively. Any disruptions in its export business could adversely affect the company business, financial condition, cash flows, and results of operations.
  • arrowThe Company was incorporated in 1979 and certain documents filed by it with the RoC and certain corporate records and other documents, are not traceable. Its cannot assure you that such forms or records will be available at all or any time in the future.
  • arrowThe Company, Subsidiary, Directors, Promoters and Group Companies are or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, financial condition, cash flows and results of operations.
  • arrowIts Promoters and members of Promoter Group will continue to collectively hold majority of the shareholding in the Company, which will allow them to influence the outcome of matters requiring shareholder approval.
  • arrowThe entire offering is through Offer for Sale by the Promoter Selling Shareholders, the Company will not receive any proceeds from the Offer for Sale.
  • arrowPartial or complete bans on packaging material in respect to its products may severely impact the company business and future business prospects.
  • arrowThe Company has outstanding trade payable to certain MSMEs. Any such delay in payment to MSME trade payables beyond 45 days may attract penal provisions under the applicable laws.
  • arrowThe company has in the past entered into related party transactions and may continue to do so in the future.
  • arrowThe company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials which represented 5.68% of its revenue from operations for Fiscal 2024 and export of products and services which represented 65.28% of its revenue from operations for Fiscal 2024 and the company does not hedge its foreign currency risk, which may adversely affect the company results of operations, financial condition and cash flows.
  • arrowThe company's business is subject to significant revenue concentration in the second half of a fiscal and its may not be able to forecast the company project schedule which could have an adverse effect on its cash flows, business, results of operations and financial condition.
  • arrowTrademark "Mamata" is registered in the name of one of its Promoters, Mahendra Patel, and the company is dependent on its trademark licence agreements with him which also includes a clause for payment of consideration of 1% of net sales to him in future subject to the shareholders approval. If the trademark licence agreements are terminated, its may consequently lose access to its trade name AMATA', which could materially and adversely impact its business, results of operations and financial condition.
  • arrowThe long useful life and high durability of machineries manufactured by the Company may lead to lower sales potential moving forward.
  • arrowIts revenue from operations for the three month period ended June 30, 2024 and Fiscals 2024, 2023 and 2022 stood at Rs. 276.20 million, Rs.2,366.11 million, Rs.2,008.65 million and Rs.1,922.47 million respectively. Although its revenue from operations have been growing year on year, the company cannot assure that the same will continue for the upcoming fiscals.
  • arrowThe company relies on the continued operations of its manufacturing facilities and any slowdown, shutdown or disruption in its manufacturing facilities may be caused by natural and other disasters causing unforeseen damages which may lead to disruptions in its business and operations, which in turn could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • arrowIts business is manpower intensive. The company business may be adversely affected by work stoppages, increased wage demands by its employees, or increase in minimum wages across various states, inability to attract or train skilled personnel and if the company is unable to engage new employees at commercially attractive terms.
  • arrowThe company failures to keep its technical knowledge confidential could erode the company competitive advantage.
  • arrowThe company appoint contract labour for carrying out certain of its ancillary operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations, cash flows and financial condition.
  • arrowThe company revenue is dependent on the bag and pouch making machines segment of its business. Any downturn in the bag and pouch making machines segment can adversely impact the company's business, results of operations, cash flow and financial condition of the Company.
  • arrowIts operations at the company Manufacturing Facilities could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees.
  • arrowCertain unsecured loans have been availed from Sharvil V Patel by its material subsidiary, Mamata Enterprises Inc, which may be recalled by lenders at any time.
  • arrowThe Offer Price, market capitalization to total turnover and price to earnings ratio based on the Offer Price of the Company, may not be indicative of the market price of the Equity Shares on listing or thereafter.
  • arrowThe company is expected to comply with quality requirements imposed by its customers and any product defect issues or failures by it or its raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or warranty and exposure to potential product liability claims.
  • arrowIf the company is unable to accurately forecast customer demand for its products, the company may not be able to maintain optimum inventory levels resulting in additional strain on its resources.
  • arrowIf the company fails to protect, or incur significant costs in defending, its intellectual property and other proprietary rights, the company's business, results of operation and financial condition could be materially harmed.
  • arrowImproper storage, processing and handling of materials and products may cause damage to its inventory leading to an adverse effect on the company's business, results of operations and cash flow.
  • arrowIts may be exposed to counterparty credit risk in certain cases and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.
  • arrowIf the company is unable to maintain and enhance its brand, the sales of its products will suffer, which would have a material adverse effect on its results of operations.
  • arrowThe company is dependent on a number of key personnel, including its Promoters and senior management, and the loss of, or the company inability to hire, retain, train, and motivate qualified personnel could adversely affect its business, results of operations and financial condition.
  • arrowThe company may faces difficulties in executing its strategies including the company growth plans.
  • arrowIts reliance on third parties for certain aspects of the company's business, including raw material suppliers, transporters of its raw materials and products and logistics, exposes the company to certain risks.
  • arrowThe company operates in a highly competitive industry. Its also face competition from both organized and unorganized players. The company failures to compete effectively could have a negative impact on the success of its business and/or impact its margins.
  • arrowIf the company is unable to maintain the Average Turnaround time for products its sales, the company's business, results of operations, cash flows and financial condition may be adversely affected.
  • arrowPricing pressure from customers may affect its gross margin, profitability and ability to increase its prices, which in turn may materially adversely affect the company's business, results of operations and financial condition.
  • arrowThere are certain risks including weaknesses such as Dependence on Raw Materials, Rapid Changes in Technology and Costly Skilled Manpower and threats such as Global Competition, Raw Material Price Fluctuation and Environmental Issues in the Indian packaging machinery industry.
  • arrowThe company relies on a robust after-sales service network to redress customer grievances. Non- performance or underperformance of its after-sales service network could significantly harm its reputation.
  • arrowThe company may lose existing accreditations, fail to obtain accreditations for facilities for which the company has made applications, or fails to renew its accreditations if the company is not able to maintain or meet evolving accreditation standards.
  • arrowIf the company is experience insufficient cash flows to fund its working capital requirements or if the company is not able to provide collateral to obtain letters of credit and bank guarantees in sufficient quantities, there may be an adverse effect on its business, cash flows and results of operation.
  • arrowIts Promoters, certain of the company Directors, Key Managerial Personnel and Senior Managerial Personnel may have interests other than reimbursement of expenses incurred and normal remuneration or benefits.
  • arrowIts contingent liabilities could adversely affect the company financial condition if they materialise.
  • arrowIts ability to pay dividends in the future will depends on the company future cash flows, working capital requirements, capital expenditures and financial condition.
  • arrowFailures or disruption of the company IT systems may adversely affect its business, financial condition, results of operations and prospects.
  • arrowFailures to obtain or renew approvals, licenses, registrations and permits to operate its business in a timely manner, or at all, may adversely affect the company's business, financial condition, cash flows and results of operations.
  • arrowPursuant to listing of the Equity shares, its may be subject to pre-emptive surveillance measures like additional Surveillance Measures ("ASM") and Graded surveillance Measures ("GSM") by the Stock Exchanges in the order to enhance market integrity and safeguard the interest of the investors.
  • arrowThe company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry in which the company operates, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
  • arrowThis Red Herring Prospectus contains information from industry sources including the industry report commissioned from Dun & Bradstreet on "Flexible Packaging Machinery" (the "D&B Report"). Prospective investors are advised not to place undue reliance on such information.
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The IPO opens on 19 Dec 2024 & closes on 23 Dec 2024.

Mamata Machinery Limited was incorporated as Patel Machinery Private Limited', as a Private Limited Company, dated April 17, 1979 issued by the Registrar of Companies, Gujarat at Ahmedabad. The name of Company was changed to Mamata Machinery Private Limited', and Company received a fresh Certificate of Incorporation dated December 16, 1988 issued by the RoC. Subsequently, Company got converted into a Public Limited Company, and the name was changed to Mamata Machinery Limited' and a fresh Certificate of Incorporation dated June 21, 2024, was issued by the RoC. The Company manufacture and export plastic bags and pouch making machines, packaging machines and extrusion equipment. It provide end-to-end manufacturing solutions for the packaging industry. Products manufactured using the machines are used across several industries as packaging applications, such as the packing of food and FMCG products. The Company primarily sell packaging machinery to direct consumer brands catering to the FMCG, Food, & Beverage Industry and bag and pouch making machines to converters and service providers who, in turn, mainly catering the FMCG and consumer industry. The Company further operate two machine manufacturing facilities, one in India and one in the USA. In India, the manufacturing facility is located on Sarkhej - Bavla Highway, Sanand, Ahmedabad, Gujarat, with a total area of about 20,662 square meters and an in-house electronic department, demo/exhibition centre and a fully equipped paint shop. The manufacturing facility in the USA is located in Bradenton, Florida, and it focuses on product applications, design and development of machines, and customisation of the machines sold in the USA. The Company started commercial operation as a manufacturer of microprocessor-controlled bag making machines in 1989. In 1991, the Company introduced servo technology. It ventured into the Film Extrusion Machinery Business in 1997. To further expand the reach, the Company began its operations in the United States through wholly-owned subsidiary, Mamata Enterprises Inc., in 2003. The Company further moved for expansion by installing over 4,500 machines in over 75 Countries in 2015. The Company further created a milestone by introducing secondary packaging automation in 2022 and launched the vertical form fill seal (VFFS) machine in 2023. The Company is proposing the Initial Public Offer of 7,382,340 Equity Shares through Offer for Sale.

Mamata Machinery Ltd IPO will close on 23 Dec 2024.

  • Among the leading exporter of machinery and equipment for converting machinery, packaging machinery and co-extrusion blown film machinery and attachment.
  • Advanced manufacturing infrastructure and material knowledge to customize systems and products based on customer specifications.
  • Technology-driven operations with a strong focus on quality, innovation-led research and development, leading to products that cater to dynamic market requirements.
  • Customer--centric operations, with an extensive global sales and distribution network.
  • Skilled and experienced management team with committed employee base.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Mahendra Patel 5743674 23.34 5209191 21.17
2 Chandrakant Patel 575550 2.34 575550 2.34
3 Nayana Patel 1967931 8 1967931 8
4 Bhagvati Patel 3205694 13.03 1978652 8.04
5 Mamata Group Corporate Service 6563376 26.67 4433562 18.02
6 Mamata Management Services LLP 4693595 19.07 3170525 12.88

  • Significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary materials could affect its estimated costs, expenditures and timelines which may have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • The company is heavily dependent on the performance of the FMCG, Food & Beverage and Consumer Industry. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the plastic processing and converting and packaging machines market can adversely impact its business, financial condition, results of operations, cash flows and prospects.
  • For the three month period ended June 30, 2024 and for the Fiscal 2024, 2023 and 2022 the inventory level days were 880 days, 255 days, 282 days and 291 days respectively, failure to maintain optimal inventory levels could increase its operating costs or lead to unfulfilled customer orders, either of which could have an adverse effect on its business, financial condition, results of operations and prospects.
  • The company faces significant competitive pressures in its industry, although in Fiscal 2024 the Company emerged as seventh largest exporter of packaging machines from India and contributed 3% of market share of total export of Packaging Machineries. Its inability to compete effectively would be detrimental to the company business and prospects for future growth.
  • Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and implement the company growth plans, thereby affecting its financial condition.
  • The company derives a significant portion of its revenue from operations from sales outside India which contributed an average of 67.64% of total revenue for the previous three Fiscals out of which business through its wholly owned subsidiary contributed to average of 37.03% of total revenue for the previous three Fiscals, any adverse developments in these markets could adversely affect its business.
  • The company derives a significant portion of its revenue from operations from our top ten customers which represented an average of 30.76% for the previous three Fiscals. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
  • Majority of its business comes from export business. The company revenue from operations from sales located outside India represented 70.42%, 65.28%, 71.52% and 66.13% for three month period ended June 30, 2024 and Fiscal 2024, Fiscal 2023 and Fiscal 2022 respectively. Any disruptions in its export business could adversely affect the company business, financial condition, cash flows, and results of operations.
  • The Company was incorporated in 1979 and certain documents filed by it with the RoC and certain corporate records and other documents, are not traceable. Its cannot assure you that such forms or records will be available at all or any time in the future.
  • The Company, Subsidiary, Directors, Promoters and Group Companies are or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, financial condition, cash flows and results of operations.
  • Its Promoters and members of Promoter Group will continue to collectively hold majority of the shareholding in the Company, which will allow them to influence the outcome of matters requiring shareholder approval.
  • The entire offering is through Offer for Sale by the Promoter Selling Shareholders, the Company will not receive any proceeds from the Offer for Sale.
  • Partial or complete bans on packaging material in respect to its products may severely impact the company business and future business prospects.
  • The Company has outstanding trade payable to certain MSMEs. Any such delay in payment to MSME trade payables beyond 45 days may attract penal provisions under the applicable laws.
  • The company has in the past entered into related party transactions and may continue to do so in the future.
  • The company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials which represented 5.68% of its revenue from operations for Fiscal 2024 and export of products and services which represented 65.28% of its revenue from operations for Fiscal 2024 and the company does not hedge its foreign currency risk, which may adversely affect the company results of operations, financial condition and cash flows.
  • The company's business is subject to significant revenue concentration in the second half of a fiscal and its may not be able to forecast the company project schedule which could have an adverse effect on its cash flows, business, results of operations and financial condition.
  • Trademark "Mamata" is registered in the name of one of its Promoters, Mahendra Patel, and the company is dependent on its trademark licence agreements with him which also includes a clause for payment of consideration of 1% of net sales to him in future subject to the shareholders approval. If the trademark licence agreements are terminated, its may consequently lose access to its trade name AMATA', which could materially and adversely impact its business, results of operations and financial condition.
  • The long useful life and high durability of machineries manufactured by the Company may lead to lower sales potential moving forward.
  • Its revenue from operations for the three month period ended June 30, 2024 and Fiscals 2024, 2023 and 2022 stood at Rs. 276.20 million, Rs.2,366.11 million, Rs.2,008.65 million and Rs.1,922.47 million respectively. Although its revenue from operations have been growing year on year, the company cannot assure that the same will continue for the upcoming fiscals.
  • The company relies on the continued operations of its manufacturing facilities and any slowdown, shutdown or disruption in its manufacturing facilities may be caused by natural and other disasters causing unforeseen damages which may lead to disruptions in its business and operations, which in turn could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • Its business is manpower intensive. The company business may be adversely affected by work stoppages, increased wage demands by its employees, or increase in minimum wages across various states, inability to attract or train skilled personnel and if the company is unable to engage new employees at commercially attractive terms.
  • The company failures to keep its technical knowledge confidential could erode the company competitive advantage.
  • The company appoint contract labour for carrying out certain of its ancillary operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations, cash flows and financial condition.
  • The company revenue is dependent on the bag and pouch making machines segment of its business. Any downturn in the bag and pouch making machines segment can adversely impact the company's business, results of operations, cash flow and financial condition of the Company.
  • Its operations at the company Manufacturing Facilities could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees.
  • Certain unsecured loans have been availed from Sharvil V Patel by its material subsidiary, Mamata Enterprises Inc, which may be recalled by lenders at any time.
  • The Offer Price, market capitalization to total turnover and price to earnings ratio based on the Offer Price of the Company, may not be indicative of the market price of the Equity Shares on listing or thereafter.
  • The company is expected to comply with quality requirements imposed by its customers and any product defect issues or failures by it or its raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or warranty and exposure to potential product liability claims.
  • If the company is unable to accurately forecast customer demand for its products, the company may not be able to maintain optimum inventory levels resulting in additional strain on its resources.
  • If the company fails to protect, or incur significant costs in defending, its intellectual property and other proprietary rights, the company's business, results of operation and financial condition could be materially harmed.
  • Improper storage, processing and handling of materials and products may cause damage to its inventory leading to an adverse effect on the company's business, results of operations and cash flow.
  • Its may be exposed to counterparty credit risk in certain cases and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.
  • If the company is unable to maintain and enhance its brand, the sales of its products will suffer, which would have a material adverse effect on its results of operations.
  • The company is dependent on a number of key personnel, including its Promoters and senior management, and the loss of, or the company inability to hire, retain, train, and motivate qualified personnel could adversely affect its business, results of operations and financial condition.
  • The company may faces difficulties in executing its strategies including the company growth plans.
  • Its reliance on third parties for certain aspects of the company's business, including raw material suppliers, transporters of its raw materials and products and logistics, exposes the company to certain risks.
  • The company operates in a highly competitive industry. Its also face competition from both organized and unorganized players. The company failures to compete effectively could have a negative impact on the success of its business and/or impact its margins.
  • If the company is unable to maintain the Average Turnaround time for products its sales, the company's business, results of operations, cash flows and financial condition may be adversely affected.
  • Pricing pressure from customers may affect its gross margin, profitability and ability to increase its prices, which in turn may materially adversely affect the company's business, results of operations and financial condition.
  • There are certain risks including weaknesses such as Dependence on Raw Materials, Rapid Changes in Technology and Costly Skilled Manpower and threats such as Global Competition, Raw Material Price Fluctuation and Environmental Issues in the Indian packaging machinery industry.
  • The company relies on a robust after-sales service network to redress customer grievances. Non- performance or underperformance of its after-sales service network could significantly harm its reputation.
  • The company may lose existing accreditations, fail to obtain accreditations for facilities for which the company has made applications, or fails to renew its accreditations if the company is not able to maintain or meet evolving accreditation standards.
  • If the company is experience insufficient cash flows to fund its working capital requirements or if the company is not able to provide collateral to obtain letters of credit and bank guarantees in sufficient quantities, there may be an adverse effect on its business, cash flows and results of operation.
  • Its Promoters, certain of the company Directors, Key Managerial Personnel and Senior Managerial Personnel may have interests other than reimbursement of expenses incurred and normal remuneration or benefits.
  • Its contingent liabilities could adversely affect the company financial condition if they materialise.
  • Its ability to pay dividends in the future will depends on the company future cash flows, working capital requirements, capital expenditures and financial condition.
  • Failures or disruption of the company IT systems may adversely affect its business, financial condition, results of operations and prospects.
  • Failures to obtain or renew approvals, licenses, registrations and permits to operate its business in a timely manner, or at all, may adversely affect the company's business, financial condition, cash flows and results of operations.
  • Pursuant to listing of the Equity shares, its may be subject to pre-emptive surveillance measures like additional Surveillance Measures ("ASM") and Graded surveillance Measures ("GSM") by the Stock Exchanges in the order to enhance market integrity and safeguard the interest of the investors.
  • The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry in which the company operates, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
  • This Red Herring Prospectus contains information from industry sources including the industry report commissioned from Dun & Bradstreet on "Flexible Packaging Machinery" (the "D&B Report"). Prospective investors are advised not to place undue reliance on such information.

The Issue type of Mamata Machinery Ltd is Book Building.

The minimum application for shares of Mamata Machinery Ltd is 61.

The total shares issue of Mamata Machinery Ltd is 7382340.

Initial public offering of up to 7,382,340 equity shares of face value of Rs. 10 each ("Equity Shares") of Mamata Machinery Limited (the "Company" or the "Issuer") for cash at a price of Rs. [*] per equity share ("Offer Price") aggregating up to Rs. [*] crores (the "Offer") comprising an offer for sale of up to 534,483 equity shares aggregating up to [*] crores by Mahendra Patel, up to 1,967,931 equity shares aggregating up to [*] crores by Nayana Patel, up to 1,227,042 equity shares aggregating up to [*] crores by Bhagvati Patel, up to 2,129,814 equity shares aggregating up to [*] crores by Mamata group corporate services llp and up to 1,523,070 equity shares aggregating up to [*] crores by Mamata management services llp ("Selling Shareholders") (the "Offer for Sale"). The offer includes a reservation of up to 35,000 equity shares aggregating up to Rs. [*] crores (constituting up to [*]% of the post offer paid-up equity share capital), for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute [*]% and [*]%, respectively, of the post-offer paid-up equity share capital of the company. The company in consultation with the book running lead manager, may offer a discount of up to [*]% (equivalent of Rs. [*] per equity share) to the offer price to eligible employees bidding under the employee reservation portion ("Employee Discount"). Price Band: Rs. 230 to Rs. 243 per equity share of face value of Rs. 10 each. The Floor price is 23 times the face value of the equity shares and cap price is 24.30 times the face value of the equity shares. Bid can be made for a minimum of 61 equity shares and in multiples of 61 equity shares.