H.M. Electro Mech Limited, based in Ahmedabad, is a leading infrastructure company specializing in various project works such as pumping machinery for water and wastewater, electrification for government projects, and diesel generating sets for government and industries. The company has a fresh issue of 36.99 Lakh shares, aiming to raise ₹27.74 Crores. The price band is set between ₹71 and ₹75 per equity share, with a market capitalization of ₹102.74 Crores at the upper price band. Retail investors must invest a minimum of ₹1,20,000, and High-Net-Worth Individuals (HNIs) must invest ₹2,40,000 for 2 lots.

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 January 29, 2025, with a tentative listing date on January 31, 2025, on the BSE SME.

Subscription and GMP Trends
The Grey Market Premium (GMP) for H.M. Electro Mech IPO is ₹16, indicating potential listing gains of 21.33%. This shows strong market interest and investor optimism in the company's upcoming listing.

Anchor Investors
H.M. Electro Mech has raised ₹7.89 Crores from anchor investors at ₹75 per share, allocating 10,52,800 shares. This signals institutional confidence in the company’s future performance.

Financial Performance and Valuation
For the period ending September 30, 2024, the company reported revenues of ₹4,542.85 Lakh and a Profit After Tax (PAT) of ₹333.89 Lakh. It also posted a robust EBITDA of ₹549.08 Lakh during the same period. The pre-issue EPS is ₹8.19, and post-issue EPS is ₹5.98 for FY24. The company’s pre-issue P/E ratio is 9.16x, and the post-issue P/E ratio is 12.55x, which is below the industry P/E ratio of 15x. This makes the IPO attractive from a valuation perspective.

Investment Recommendation
Given the positive Grey Market Premium (GMP) of 21.33% and the company's steady financial performance, we recommend investors to apply for the H.M. Electro Mech Limited IPO for potential listing gains.

IPO Allotment Process
The allotment date for the H.M. Electro Mech IPO is January 29, 2025. Investors can check their allotment status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID.

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