HM Electro Mech made a notable entry into the stock market on January 31, with shares listed at ₹81 on the BSE SME platform—an 8% premium over its issue price of ₹75.
Overwhelming IPO Subscription
The ₹27.74 crore IPO, open from January 24 to January 28, received an extraordinary response from investors.
Priced between ₹71-75 per share, the IPO was oversubscribed 91.75 times, with 22.57 crore bids placed against the 24.60 lakh shares offered.
Retail Investors: Subscribed 95.55 times
Non-Institutional Investors (NIIs): Subscribed 183.65 times
Qualified Institutional Buyers (QIBs): Subscribed 16.01 times
Key Details of the IPO
The IPO consisted of a fresh issue of 36.99 lakh shares with no Offer for Sale (OFS). Retail investors could apply for a minimum of 1,600 shares, requiring an investment of ₹1.2 lakh.
The allocation breakdown was as follows:
1) 20% reserved for Qualified Institutional Buyers (QIBs)
2) 15% for Non-Institutional Investors (NIIs)
3) 35% for Retail Investors
Use of Funds and Key Stakeholders
HM Electro Mech raised ₹7.9 crore from anchor investors on January 23, 2024, prior to the public offering. The funds will be used for working capital and general corporate purposes.
Beeline Capital Advisors Pvt Ltd acted as the lead manager, Cameo Corporate Services Limited as the registrar, and Spread X Securities Private Limited as the market maker.
Before the IPO launch, the company raised ₹7.9 crore from anchor investors on January 23, 2024. The funds raised will be used for working capital needs and general corporate purposes.
Advisors and Registrars
Beeline Capital Advisors Pvt Ltd was the lead manager for the issue. Cameo Corporate Services Limited acted as the registrar, and Spread X Securities Private Limited served as the market maker.
