HM Electro Mech IPO Subscribed Over 12 Times: GMP, Price Band, and Key Details
The SME IPO of HM Electro Mech has received a strong response, with an overall subscription of 12.4 times as of Day 2 (January 27, 2025). The company is targeting to raise Rs 28 crore through a fresh equity sale of 36.99 lakh shares, priced at Rs 71-75 per share. The IPO opened on January 24 and closes on January 28, with listing scheduled for January 31 on the BSE SME platform.
Subscription Details
- Retail Investors: Oversubscribed by 23 times.
- Non-Institutional Investors (NIIs): Subscribed by 6.32 times.
- Qualified Institutional Buyers (QIBs): No bids made yet.
GMP and Price Band
The shares of HM Electro Mech are trading at a GMP (Grey Market Premium) of Rs 24, which is a 32% premium over the upper price band of Rs 75 per share. Investors can bid for shares in lots of 1,600.
Use of Proceeds
The company plans to utilize the net proceeds from the IPO for:
- Working capital requirements.
- General corporate purposes.
HM Electro Mech's Business Overview
HM Electro Mech specializes in turnkey projects, including supply, installation, testing, and commissioning of pumping machinery, along with operation and maintenance. The company originally focused on infrastructure projects for water supply schemes, particularly those involving water and wastewater pumping machinery and accessories.
Financial Performance
For the quarter ending September 2024, the company reported:
- Revenue: Rs 45 crore
- Net Profit: Rs 3.33 crore
Key Dates and Structure
- IPO Closing Date: January 28, 2025
- Allotment Date: January 29, 2025
- Listing Date: January 31, 2025
The IPO is structured with 50% reserved for QIBs, 35% for retail investors, and 15% for NIIs.
Industry Overview
The built environment sector, encompassing engineering, construction services, manufacturers, and governmental entities, remains a vital contributor to socio-economic infrastructure. This market offers immense growth potential for companies like HM Electro Mech.
IPO Lead Managers and Registrars
The IPO's lead manager is Beeline Capital Advisors, while the registrar is Cameo Corporate Services.
Disclaimer: The information provided here is for educational and informational purposes only and does not constitute financial advice. Readers are advised to consult financial experts and conduct thorough research before making investment decisions.
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