H.M. ELECTRO MECH LIMITED, Ahmedabad Is An Infrastructure Company In The Field Of All Type Of Project Work Of Pumping Machineries For Water And Waste Water, Electrification Project Of Central And State Government, Corporations, Diesel Generating Sets Projects With Government, Nationalised Bank And Industries, Instrumentation Work, Civil Work Etc.

H.M. Electro Mech, an Book Built Issue amounting to ₹ 27.74 Crores, consisting entirely an fresh issue of 36.99 Lakh Shares. The subscription period for the H.M. Electro Mech IPO opens on January 24, 2025, and closes on January 28, 2025. The allotment is expected to be finalized on or about Wednesday, January 29, 2025, and the shares will be listed on the BSE SME with a tentative listing date set on or about Friday, January 31, 2025.

The Share price band of H.M. Electro Mech IPO is set at ₹ 71 to ₹ 75 per equity share. The Market Capitalisation of the H.M. Electro Mech Limited at IPO price of ₹ 75 per equity share will be ₹ 102.74 Crores. The lot size of the IPO is 1,200 shares. Retail investors are required to invest a minimum of ₹ 1,20,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (2,400 shares), amounting to ₹ 2,40,000.

Beeline Capital Advisors Private Limited is the book running lead manager of the H.M. Electro Mech IPO, while Cameo Corporate Services Limited is the registrar for the issue. Spread X Securities Private Limited is the Market Maker for H.M. Electro Mech IPO.

H.M. Electro Mech Limited IPO GMP Today
The Grey Market Premium of H.M. Electro Mech Limited IPO is expected to be ₹ 16 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

H.M. Electro Mech Limited Day Wise IPO GMP Trend

Date	IPO Price	Expected Listing Price	GMP	Last Updated
20 January 2025	₹ 75	₹ 91	₹ 16 (21.33%)	17:00 PM; 20 Jan 2025

H.M. Electro Mech Limited IPO Live Subscription Status Today: Real-Time Updat
As of 07:00 PM on 28 January, 2025, the H.M. Electro Mech IPO live subscription status shows that the IPO subscribed 86.08 times on its Final day of subscription period. Check the H.M. Electro Mech IPO Live Subscription Status Today at BSE.

H.M. Electro Mech IPO Anchor Investors Report
H.M. Electro Mech has raised ₹ 7.89 Crores from Anchor Investors at a price of ₹ 75 per shares in consultation of the Book Running Lead Managers. The company allocated 10,52,800 equity shares to the Anchor Investors. Check Full List of H.M. Electro Mech Anchor Investor List.

Note:- Equity Shares allotted to Anchor Investors (if any) are allotted from Qualified Institutional Buyers (QIBs) reservation portion.
Note:- The Number of shares offered shown IPO subscription section table is calculated at the lower end of the price band and Number of shares calculated in IPO details table section is calculated at upper end of the price band in case of Book Building Issue, so there can be difference. This is because we assume shares will be issued by the company at upper band as Anchor Investors also subscribe at upper band and shares will be issued at lower band only if in case of undersubscription of IPO.
Note:- Market Maker portion (if any) are not shown separately in subscription table and included in NIIs reservation portion

H.M. Electro Mech Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online
H.M. Electro Mech IPO allotment date is 29 January, 2025, Wednesday. H.M. Electro Mech IPO Allotment will be out on 29 January, 2025 and will be live on Registrar Website from the allotment date. Check H.M. Electro Mech IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select H.M. Electro Mech Limited IPO from the dropdown list of IPOs
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of H.M. Electro Mech Limited IPO
H.M. Electro Mech proposes to utilise the Net Proceeds towards the following objects: 
1. ₹ 2,100.00 Lakhs is required to Meet Working Capital Requirements
2. General Corporate Purposes

Refer to H.M. Electro Mech Limited RHP for more details about the Company.

Check latest IPO Review & analysis, Live IPO GMP today, Live IPO Subscription Status Today, Share Price, Financial Information and other details before applying in the IPO.

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About H.M. Electro Mech Limited

Business Overview

H.M. Electro Mech Company specializes in turnkey projects involving the supply, installation, testing, and commissioning of pumping machinery, along with comprehensive operation and maintenance services. Initially focused on water supply schemes for pumping machinery and allied accessories in water and wastewater management, the company has diversified into electrification projects for Indian Railways, nationalized banks, and municipal corporations. The company has expanded into EPC (Engineering, Procurement, and Construction) projects, including cross-country pipeline installation, water treatment plant (WTP) construction, pump house civil works, diesel generator sets, panel rooms, instrumentation, and PLC-SCADA systems. Collaboration and joint ventures are undertaken for civil works in EPC projects.

The product portfolio includes pumps, pipes, transformers, motors, and electronic accessories. H.M. Electro Mech is ISO 9001:2015 certified and holds Class 'AA' certification, the highest category for EPC contracts, from the Government of Gujarat's Irrigation Division. It is also an approved electrical contractor under the Indira Gandhi Nahar Pariyojana in Rajasthan and authorized for electrical installation works by the Gujarat Energy and Petrochemicals Department.

The key clients include state and central governments, municipal corporations, the banking sector, and educational institutes. With its registered office in Gujarat, the company generates 84% of its revenue from the state and has expanded operations to Rajasthan, Maharashtra, Madhya Pradesh, Punjab, and Chandigarh. Projects are secured through competitive tender bidding, with pricing strategies tailored to project-specific requirements. The company offers flexible payment terms for non-government clients, ensuring periodic settlements of receivables.

The skilled workforce and strong management team enable the company to deliver projects adhering to design standards, safety protocols, and user-friendly practices. As of September 30, 2024, the Company had 30 permanent employees on the payroll of the company and 107 working on contractual basis. The Banker to the Company is ICICI Bank Limited

Industry Analysis

Engineering & Construction (E&C) industry
The built environment is a multifaceted composition of social and economic infrastructures, involving key drivers such as engineering and construction service providers and owners, manufacturers, building material providers, and governmental and regulatory entities. It majorly works on EPC (Engineering, Procurement and Construction) contracts by the way of contractual agreement between a project owner and the contractor. This framework allows the owner to transfer the complete risk of design, procurement and construction to the contractor where the contractor is solely responsible for completing the project and handing it over to the owner in a turnkey condition. This is why EPC contracts are sometimes called turnkey construction contracts or simply turnkey contracts.

Over the next few years, this industry is expected to shift further toward a productized workflow. This approach can reduce the uniqueness of projects by selecting from catalogues or libraries of designs, stabilize the value chain with recurring business, embrace sustainability and circularity at its core, and take out a lot of on-site construction hours known for notoriously low productivity. At the centre of this radical shift lies technology as the catalyst and accelerator. In such a challenging environment, service excellence continues to be critical to the success of engineering and construction companies as they work to guard their value addition and capture new opportunities. Over the last few years, engineering and construction clients have elevated their expectations for a smarter built environment including smart homes, buildings, and infrastructure. They want to optimize their energy use, resolve service issues immediately, and get more value out of their built assets.

The strategic expansion of services may deliver a win-win for engineering and construction companies and for their customers. this approach fosters higher levels of customer satisfaction, as companies can cater to a broader range of client needs and preferences, thereby strengthening client relationships and establishing a positive reputation in the industry.

The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. India has a competitive advantage in terms of manufacturing costs, market knowledge, technology, and innovation in various engineering sub-sectors. India’s engineering sector has witnessed remarkable growth over the last few years, driven by increased investment in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of huge strategic importance to India’s economy.

The development of the engineering sector of the economy is also significantly aided by the policies and initiatives of the Indian government. The engineering industry has been de-licensed and allows 100% foreign direct investment (FDI). Additionally, it has grown to be the biggest contributor to the nation's overall merchandise exports.

India became a permanent member of the Washington Accord (WA) in June 2014. it is now part of an exclusive group of 17 countries that are permanent signatories of the WA, an elite international agreement on engineering studies and the mobility of engineers.

The Capital Goods sector contributes to 12% of India’s manufacturing output and 1.8% of GDP. Market valuation of the capital goods industry was US$ 43.2 billion in FY22.

Imports of Electrical Machinery in India increased to US$ 11.38 billion in FY23. The Indian electrical equipment industry comprises of two broad segments, Generation equipment (boilers, turbines, generators) and Transmission & Distribution (T&D) and allied equipment like transformers, cables, transmission lines, etc. The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP. Incentives for capacity addition in power generation will further increase the demand for electrical machinery.

The Index of Industrial Production (IIP), in absolute terms, is projected to be 141.6 in September 2023 as against 133.8 in September 2022.

The electrical equipment market share in India is expected to increase by US$ 33.74 billion from 2021 to 2025 at a CAGR of 9%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025. In FY21, India’s heavy electrical equipment production stood at Rs. 168,949 crore (US$ 21.15 billion). Production of generation equipment (boilers, turbines and generators) in India is estimated to be around US$ 5.7 billion by 2022. The electrical machinery/equipment segment grew nearly 90% with shipments jumping to Rs. 13,606 crore (US$ 1.6 billion) in April-July 2022 from Rs. 7,202 crore (US$ 869 million) in the year-ago period.

Business Strengths

1. Comprehensive Solutions: The single-window approach streamlines the entire project lifecycle, from conception to ongoing maintenance. This highlights our company's ability to provide end-to-end solutions for projects, starting from conceptualization all the way through to maintenance. By offering a single point of contact for clients, we streamline the entire process, by reducing complexities and ensuring a smoother experience from start to finish.

2. Strategic Partnerships: They maintain robust relationships with leading manufacturers and OEMs, facilitating competitive pricing.

3. Expedited delivery: Maintaining strong relationships with leading manufacturers and Original Equipment Manufacturers (OEMs) is crucial for several reasons. Firstly, it allows access to competitive pricing, which is advantageous for both the company and their clients. Secondly, expedited delivery through these partnerships helps to meet tight project timelines, giving their company a competitive edge in the market.

4. Prompt Decision-Making: Their agile decision-making process ensures swift project progression and responsiveness to client needs. Agility in decision-making is a valuable trait in today's fast-paced business environment. By having a streamlined decision-making process, the company can quickly adapt to changes, seize opportunities, and address client needs promptly. This agility can significantly impact project progression, client satisfaction, and overall business success.

5. Experienced Promoters and management team: The Promoter Directors, Mahendra Ramabhai Patel and Dipak Padmakant Pandya have more than 20 years in the business of electro-mechanical projects. Before the incorporation of the Company, the Promoters were associated with M/s. H M Engineers, a partnership firm engaged in the business of water supply & waste water treatment and pumping machinery installation works in the pump house of Government Turnkey Projects which was later converted into public limited Company during the year 2018.

6. Robust Order Book: As on September 30, 2024, they are having 37 projects including O&M projects aggregating of ₹ 41,034.41 lakhs. 

7. Stability and Continuity: A high retention ratio indicates that employees are satisfied and committed to staying with the company. Employee retention is often indicative of a positive work environment and organizational culture. A high retention ratio not only signals that employees are satisfied but also ensures continuity in operations. This stability minimizes disruptions caused by turnover, allowing our company to maintain consistency in delivering services and building client relationships over time.

Business Strategies

1. Continue to enhance their project execution capabilities
They intend to continue our focus in enhancing project execution capabilities so as to derive twin benefits of client satisfaction and improvements in operating margins. They will constantly endeavour to leverage their operating skills through their equipment and project management tools to increase productivity and maximize asset utilization in their ongoing projects. 

2. Leveraging their market skills and relationship
The business of the Company is customer oriented and always strives to maintain good relationship with the marketers. Leveraging their market skills and relationships is a continuous process in their organization and the skills that we impart in their employees give importance to customers. They aim to do this by leveraging their operations expertise as well as marketing skills and their industry relationships.

3. Maintaining edge over competitors
They intend to continue to enhance and scale their existing executional capabilities to deliver best quality construction to the clients. By enhancing the executional capabilities, they intend to maintain edge over their competitors. In order to maintain their competitive edge, they will continue to add best construction equipment, skilled labours and good quality materials.

4. Expand their geographical footprint
They intend to expand their geographical footprint and grow the business by increasing orders from outside of Gujarat. To control diversification risks, they may at first, limit their expansion to other states to undertaking projects first in the areas where their core competencies lie. Through an increasingly diversified portfolio, they hope to broaden their revenue base and also hedge against risks in specific areas or projects and protect ourselves from fluctuations resulting from business concentration in limited geographical areas.

Business Risk Factors and Concerns

1. Geographical Concentration Risk
A significant portion of Revenue from Operations (RFO) is derived from Gujarat (84.44%) and Rajasthan (83.46%) as of September 30, 2024. Any adverse developments, such as increased competition, economic changes, or demographic shifts in these regions, could impact business prospects, financial stability, and operational results. This regional concentration may also limit the ability to expand into other parts of India.

2. Dependency on Competitive Bidding for Contracts
Contracts are secured through a competitive bidding process based on pre-qualification criteria such as net worth, experience, performance, financial strength, and bidding capacity. The business is reliant on obtaining new contracts for growth, but uncertainties around timing, project commencement, and execution can lead to fluctuations in results and cash flows. Failure to qualify for or secure new contracts could adversely impact financial performance and operations.

H.M. Electro Mech Company faces risks due to regional revenue concentration in Gujarat and Rajasthan and reliance on competitive bidding for contracts. These factors could lead to financial and operational challenges in case of adverse developments or failure to secure new projects.