H.M. Electro Mech IPO: Comprehensive Guide for Investors

H.M. Electro Mech Limited, an infrastructure company, is launching an Initial Public Offering (IPO) to raise ₹ 27.74 Crores. The price band is set between ₹ 71 to ₹ 75 per equity share, and the IPO size includes a fresh issue of 36.99 Lakh shares. The subscription period begins on January 24, 2025, and ends on January 28, 2025, with the shares set to list on the BSE SME by January 31, 2025.

IPO Details

• Price Band: ₹ 71 to ₹ 75 per share
• Market Capitalization at Upper Price Band: ₹ 102.74 Crores
• Lot Size: 1,200 shares
• Retail Minimum Investment: ₹ 1,20,000 (for 1,200 shares)
• HNI Minimum Investment: ₹ 2,40,000 (for 2,400 shares)

Company Performance and Market Insights

• The Grey Market Premium (GMP) for H.M. Electro Mech IPO is ₹ 16, signaling potential listing gains of 21.33%.
• The company specializes in infrastructure projects like pumping machinery for water and wastewater, electrification projects, and diesel generating sets, mainly working with the government, nationalized banks, and industries.

IPO Objectives

The net proceeds from the IPO will be used for the following purposes:

1. Meeting working capital requirements (₹ 2,100 Lakhs)
2. General corporate purposes

Financial Performance

• Revenue (FY 2024): ₹ 11,729.98 Lakhs
• Profit After Tax (FY 2024): ₹ 818.61 Lakhs
• Post-issue P/E Ratio: 12.55x (Industry P/E: 15x)
• ROCE (FY 2024): 33.28%
• EPS (FY 24): Pre-issue: ₹ 8.19, Post-issue: ₹ 5.98

H.M. Electro Mech IPO Review

The company's solid financial performance, strong grey market premium, and fair pricing make this IPO an attractive investment option for those seeking potential listing gains. With steady growth and an experienced management team, the IPO presents a good opportunity in the infrastructure sector.

Anchor Investors and Subscription Status

H.M. Electro Mech has successfully raised ₹ 7.89 Crores from Anchor Investors at ₹ 75 per share. As of January 28, 2025, the IPO has been subscribed 86.08 times, indicating strong investor interest.

IPO Allotment Check:

• The allotment status will be available from January 29, 2025 on the Registrar's website. Investors can easily check the status by entering the required details.

Given the high demand and robust financials, H.M. Electro Mech Limited IPO is a promising investment for those looking to capitalize on infrastructure growth and potential listing gains.