Mamata’s equipment listing: Stock more than doubles investors’ wealth after stellar start
Mamata Machinery after receiving huge subscription made a respectable debut in trading on Friday (December 27). In both markets, the stock was traded at a whopping 147 percent premium at Rs 600, compared to the issued price of Rs 243 per share.
The industrial products company received the highest subscription of 194.95 times among all five issues to be listed today including Transrail Lighting, DAM Capital, Sanathan Textiles and Concord Enviro.
Prashanth Tapse, Senior VP (Research), Mehta Equities giving his previous view on the listing said, “Although the stock market situation was not good last week, but with the rush of the last day Mamata Machinery received a great response from all sets of investors with overall subscription 194 times. We believe there is a need for a reasonable valuation that keeps good listing benefits on the table for new investors.
Considering the market sentiment and the high demand for subscriptions, we expect that the company can list with a strong listing profit and high chances of bringing a return of almost 100 percent of its issue price.
We recommend that shared investors can think about the profit of booking more than we expect. Although long-term investors should consider HOLDING IT LONG-TERM despite being aware of short-term volatility and market risk. For unallocated investors, we advise to accumulate if we get listing dips due to profit booking efforts, he added.
Mamata Machinery IPO details
An IPO book issue of Rs 179.39 crore has been launched which comprises of the total for sale portion (OFS) of 0.74 crore shares. The subscription period for the issue opened on 19 December 2024 and ended on 23 December 2024.
