The IPO, which was completely a fresh equity sale of nearly 37 lakh shares, was offered at Rs 75 apiece to investors. If we consider, the debut is likely to be with a premium of 8%.
HM Electro Mech was booked by a robust 91 times, where non-institutional investors led the bidding with a subscription of 184 times. The retail portion was not too far behind with a category subscription figure of 95 times.
The net proceeds from the public offer will be used for working capital requirements and general corporate purposes.
The company is engaged in the field of turnkey projects of supply, installation, testing and commissioning of pumping machinery along with comprehensive operation and maintenance.
Initially, the core business of the company was infra projects related to water supply schemes involving pumping machinery and allied accessories for water and waste water.Over the years, HM Electro Mech has diversified in the field of electrification projects with Indian railways, nationalized banks and
municipal corporations. Recently, it has started EPC (engineering, procurement and construction) field projects which involves laying cross country pipe line and civil work related to water supply projects.
These include construction of a water treatment plant (WTP), civil work for pump houses, diesel generating sets, panel room, instrumentation, PLC-SCADA.
For such EPC projects, the company is working in collaboration with other companies also for carrying out the civil work part of the projects.
Since 2018, HM Electro has completed 16 projects worth Rs 132 crore. Apart from this, currently it is engaged in 37 ongoing projects, which have a value of Rs 410 crore. Out of this, revenue recognised till September 2024 amounts to Rs 227 crore.
For the period ended September 2024, the company clocked total revenues of Rs 45 crore and net profit of Rs 3.33 crore.
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