Gujarat-based packaging equipment manufacturer Mamata Machinery Ltd has taken a significant step towards going public by filing preliminary papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company’s initial share sale is structured entirely as an offer for sale (OFS), comprising 73.82 lakh equity shares being sold by the promoters, as per the draft red herring prospectus (DRHP).
The promoters involved in the OFS are Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP. Notably, since the IPO is an OFS, Mamata Machinery will not receive any proceeds from the public issue. Instead, all funds raised will go directly to the selling shareholders.
In the draft papers filed on Friday, Mamata Machinery outlined the objectives of the initial share sale, emphasizing the benefits of listing the equity shares on the stock exchanges. The company stated, “The objective of the initial share sale is to gain the advantages of listing the equity shares on the stock exchanges.” It also highlighted the expected benefits, including enhanced visibility and brand image, improved liquidity for shareholders, and the establishment of a public market for the equity shares.
Mamata Machinery is a prominent manufacturer and exporter of plastic bags and pouch-making machines, packaging machines, and extrusion equipment, providing comprehensive end-to-end manufacturing solutions for the packaging industry. The company markets its products under the brand names ‘Vega’ and ‘Win’. As of May 2024, Mamata Machinery has installed over 4,500 machines in 75 countries worldwide, serving the entire flexible packaging market value chain.
Beeline Capital Advisors Private Limited is acting as the sole Book Running Lead Manager to the issue (BRLM).
