Power Mech IPO opens, to get Rs 82 cr via anchor portion

Moneycontrol BureauThe Rs 273-crore initial public offering (IPO) of Power Mech Projects has opened for subscription on Friday. The price band is fixed at Rs 615-640 per equity share.

The issue comprises a fresh issue of 21,28,000 shares and an offer for sale of up to 21,41,000 shares by India Business Excellence Fund I, India Business Excellence Fund represented by its trustee IL&FS Trust company limited, P Srinivasa Rao, and D Aakashnag, a minor represented by his guardian DS Rao.

The 42.69 lakh shares issue will constitute 29.02 percent of the fully diluted post issue paid-up equity share capital of the company. On the back of price band, the company could raise between Rs 162.5 crore and Rs 273.2 crore through its public issue.

Power Mech will receive Rs 81.96 crore from anchor investors like DSP Blackrock India Tiger Fund, SBI MF, L&T MF, Morgan Stanley Mauritius, HDFC MF, Tata AIA Life Insurance and IDFC MF. It has finalised allocation of 12,80,700 equity shares in aggregate, to anchor investors at allocation price of Rs 640 per share.

The company proposes to use the IPO proceeds for funding working capital requirements of the company and general corporate purposes.

The issue will close on August 11, 2015. The minimum bid lot is 20 equity shares and in multiples of 20 equity shares thereafter.

Power Mech Projects is engaged in the business of erection work and operation & maintenance (O&M) for power plants. It is also engaged in the business of civil works.

Equity shares are proposed to be listed on the National Stock Exchange of India and the BSE. The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, IIFL Holdings Limited and Motilal Oswal Investment Advisors Private Limited. The registrar to the issue is Karvy Computershare Private Limited.