H.M. Electro Mech Limited, based in Ahmedabad, is an infrastructure company specializing in a wide range of project works, including pumping machineries for water and wastewater, electrification projects for central and state governments, and diesel generating sets projects. The company also handles instrumentation and civil works, ensuring a broad and diversified approach in its operations. Their expertise has been honed through decades of experience, particularly with M/s. H M Engineers, a partnership firm that transitioned into H.M. Electro Mech in 2018.

IPO Details
H.M. Electro Mech is launching an IPO worth ₹ 27.74 Crores, consisting of 36.99 lakh fresh shares. The price band is set between ₹ 71 and ₹ 75 per share, and the lot size for the IPO is 1,200 shares. Retail investors are required to make a minimum investment of ₹ 1,20,000, while High Net-Worth Individuals (HNIs) must invest at least ₹ 2,40,000 for two lots. The subscription period opens on January 24, 2025, and closes on January 28, 2025, with the allotment date scheduled for January 29, 2025.

The tentative listing date on BSE SME is set for January 31, 2025, marking an exciting opportunity for investors interested in the infrastructure and engineering sector.

Grey Market Premium (GMP)
The Grey Market Premium (GMP) for H.M. Electro Mech IPO is currently ₹ 16, which suggests potential listing gains of 21.33%. However, it’s important to note that the GMP reflects demand and supply in the unorganized market and is not a guaranteed indicator of performance on the listing day. Investors are encouraged to rely on solid financial metrics when making investment decisions.

IPO Subscription Status
As of 5:00 PM on January 24, 2025, the H.M. Electro Mech IPO has been subscribed 7.32 times on its first day, showing strong investor interest. This is a promising sign for the success of the IPO, and investors will need to keep an eye on the subscription status to gauge demand.

Financial Performance and Metrics
H.M. Electro Mech has seen a steady growth trajectory over the years, with revenues from operations reaching ₹ 4,542.85 lakh as of September 30, 2024. The company’s EBITDA and Profit after Tax (PAT) figures also reflect consistent profitability, making it an attractive prospect for investors.

• Pre-issue EPS for FY24 stands at ₹ 8.19, with a post-issue EPS of ₹ 5.98.
• The company’s P/E ratio of 9.16x pre-issue is below the industry average of 15x, making the IPO reasonably priced.
• ROCE and ROE for FY24 stand at 33.28% and 29.06%, indicating high returns on capital and equity.

Utilization of IPO Proceeds
The net proceeds from the IPO will be primarily used for working capital requirements and for general corporate purposes. This strategic use of funds will allow H.M. Electro Mech to strengthen its infrastructure and increase its project execution capabilities.

Why Apply for the H.M. Electro Mech IPO?
Given the strong financial performance, attractive pricing, and solid demand, the H.M. Electro Mech IPO presents a potentially lucrative opportunity for investors looking to gain exposure to the growing infrastructure and engineering sector. The positive Grey Market Premium further reinforces the potential for listing gains, making it an appealing option for retail investors and HNIs alike.

IPO Allotment Date and Status

The allotment date for the H.M. Electro Mech IPO is set for January 29, 2025. To check the allotment status, investors can visit the registrar's website and follow the steps outlined to check whether they have been allocated shares in the IPO.

Conclusion
H.M. Electro Mech’s IPO offers a promising investment opportunity, backed by strong financials, high demand in the market, and strategic use of IPO proceeds. Investors interested in the infrastructure sector should consider applying to take advantage of this exciting new listing.

For more Real-time Updates, Bookmark https://financesaathi.com

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.