H.M. Electro Mech Limited, headquartered in Ahmedabad, is a prominent infrastructure company specializing in various electro-mechanical projects. The company’s operations span water and wastewater management, electrification, diesel generator installations, instrumentation work, and civil construction for government and corporate sectors.

IPO Details

H.M. Electro Mech Limited is raising ₹27.74 Crores through its IPO, offering investors a chance to participate in its growth journey. Here are the critical details:

• IPO Type: Book Built Issue (Fresh Issue)
• Total Issue Size: ₹27.74 Crores (36.99 Lakh Shares)
• Price Band: ₹71 to ₹75 per equity share
• Lot Size: 1,200 shares (₹1,20,000 minimum investment for retail investors)
• IPO Dates: January 24, 2025, to January 28, 2025
• Listing Exchange: BSE SME
• Tentative Listing Date: January 31, 2025

Financial Performance

H.M. Electro Mech has demonstrated steady growth in recent years, with a robust revenue trajectory and profitability:

• Revenue Growth: ₹4,542.85 Lakh (H1 FY24) vs. ₹11,729.98 Lakh (FY23)
• EBITDA: ₹549.08 Lakh (H1 FY24) vs. ₹1,282.41 Lakh (FY23)
• Profit After Tax (PAT): ₹333.89 Lakh (H1 FY24) vs. ₹818.61 Lakh (FY23)

Key Metrics

The company’s valuation and profitability ratios are competitive, reflecting a fairly priced IPO:

• Pre-Issue EPS (FY24): ₹8.19
• Post-Issue EPS (FY24): ₹5.98
• Pre-Issue P/E Ratio: 9.16x
• Post-Issue P/E Ratio: 12.55x
• ROCE (FY24): 33.28%
• ROE (FY24): 29.06%
• RoNW (FY24): 25.37%

Anchor Investors and Market Maker

H.M. Electro Mech raised ₹7.89 Crores from anchor investors at ₹75 per share. Beeline Capital Advisors Private Limited is the lead manager, with Cameo Corporate Services Limited as the registrar.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for H.M. Electro Mech IPO is ₹16, indicating potential listing gains of 21.33%. However, GMP should only be viewed as an indicator of demand and not as a guaranteed measure of performance.

Day-Wise GMP Trend:

• January 20, 2025: GMP ₹16 (21.33%), Expected Listing Price ₹91

Recommendation

H.M. Electro Mech Limited’s consistent financial growth, competitive valuation metrics, and strong GMP trends make this IPO an attractive option for investors seeking short-term listing gains. The company's solid foundation in the infrastructure sector adds further credibility to its growth potential.

Final Thoughts

With its diversified operations and proven track record, H.M. Electro Mech Limited is poised for growth in India’s infrastructure sector. Investors are encouraged to assess their risk appetite and investment goals before participating. Stay updated for real-time subscription status and listing developments.

The Upcoming IPOs in this week and coming weeks are Malpani Pipes And Fittings and Dr. Agarwal's Health Care.

The Current active IPO are H.M. Electro Mech, GB Logistics and CLN Energy.

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