H.M. Electro Mech Limited, an Ahmedabad-based infrastructure company, is set to launch its initial public offering (IPO) on January 24, 2025. The company specializes in pumping machinery for water and wastewater projects, electrification projects, instrumentation, and civil work for government and corporate clients. The IPO is a Book Built Issue worth ₹27.74 crores, consisting entirely of a fresh issue of 36.99 lakh shares. The subscription window will remain open until January 28, 2025.

IPO Price Band & Market Capitalization

The price band of the H.M. Electro Mech IPO is set between ₹71 and ₹75 per share. At the upper end of the price band, the company's market capitalization will be approximately ₹102.74 crores.

Lot Size & Investment Requirements

The minimum lot size for retail investors is 1,200 shares, translating to an investment of ₹1,20,000. High-Net-Worth Individuals (HNIs) must apply for at least two lots (2,400 shares), requiring a minimum investment of ₹2,40,000.

IPO Allotment & Listing Date

The basis of allotment for H.M. Electro Mech IPO will be finalized on January 29, 2025, with refunds and Demat account credits scheduled for the next day. The IPO is expected to be listed on the BSE SME platform on January 31, 2025.

H.M. Electro Mech IPO GMP Today

The Grey Market Premium (GMP) for H.M. Electro Mech IPO is currently around ₹16, indicating a potential listing price of ₹91 per share. However, GMP is not an official indicator of listing performance and varies based on demand and supply in the unregulated market.

IPO Subscription Status

As of 7:00 PM on January 28, 2025, the IPO received an overwhelming response, with an overall subscription of 86.08 times.

Anchor Investors in H.M. Electro Mech IPO

The company has successfully raised ₹7.89 crores from Anchor Investors at the upper price band of ₹75 per share, allocating 10,52,800 equity shares. This demonstrates strong institutional investor confidence in the company's growth prospects.

Company Financials & Performance

H.M. Electro Mech has shown steady financial growth over the years:

• Revenue from operations: ₹11,729.98 lakh in FY24 (previously ₹10,166.54 lakh in FY23)

• EBITDA: ₹1,282.41 lakh in FY24 (previously ₹908.60 lakh in FY23)

• Profit After Tax (PAT): ₹818.61 lakh in FY24 (previously ₹601.15 lakh in FY23)

Valuation & Investment Outlook

The IPO valuation suggests a pre-issue EPS of ₹8.19 and post-issue EPS of ₹5.98. The pre-issue P/E ratio stands at 9.16x, while the post-issue P/E ratio is 12.55x, compared to the industry average of 15x.

Given the strong financials and reasonable valuation, H.M. Electro Mech IPO presents an attractive investment opportunity, especially for listing gains.

How to Check IPO Allotment Status

Follow these steps to check your allotment status:

1. Visit the Registrar's website.

2. Select H.M. Electro Mech Limited IPO from the dropdown list.

3. Enter your Application Number, PAN, or DP Client ID.

4. Click Submit to check your allotment status.

Use of IPO Proceeds

The company plans to utilize the IPO proceeds for:

• Working Capital Requirements (₹2,100.00 lakhs)

• General Corporate Purposes

Final Verdict: Should You Apply?

Given the company’s strong financials, attractive valuation, and positive GMP, investors are advised to apply for the H.M. Electro Mech IPO for listing gains.