HM Electro Mech IPO subscribed 86.99 times on day 3; check allotment, listing dates

HM Electro Mech IPO

The maiden public issue of HM Electro Mech has recorded a massive 86.99 times subscription on day 3, i.e. January 28. Investors have applied for 23.02 crore equity shares during January 24-28, against the offer size of 26.46 lakh shares via 80,275 applications.

All categories of investors contributed to the subscription numbers, with non-institutional investors being at the top buying 136.4 times their reserved portion. Retail investors subscribed 97.73 times their allotted quota, while the portion set aside for qualified institutional buyers was booked 17.96 times, the bids details published on the BSE showed.

The company in consultation with merchant bankers will finalise basis of allotment of IPO shares by the end of January 29, while the trading in its equity shares will commence on the BSE SME effective January 31.

Its IPO shares attracted around 20-30 premium over the upper price band in the grey market, the market observers said. Investors generally observe the grey market premium to guess about the potential listing price.

Click Here To Read All IPO News

The Ahmedabad-based firm that engaged in infra projects related to water supply scheme tapped capital markets for raising funds up to Rs 27.74 crore via initial public offering of 36.99 lakh shares. The price band for the book-built issue was Rs 71-75 per share.

Out of which, it has already mobilised Rs 7.9 crore via anchor book on January 23, a day before the issue opening for public subscription.

These IPO proceeds will be utilised mainly for its working capital requirements, and some money for general corporate purposes.

HM Electro Mech also involved in the field of electrification projects, and EPC (engineering, procurement and construction) projects in the water supply segment. For EPC projects it is working in collaboration or joint ventures with other companies for carrying out the civil work part of the project.

Beeline Capital Advisors is the sole book running lead manager to the issue.