H.M. Electro Mech shares lists at 8% premium on BSE SME platform

H.M. Electro Mech Ltd. made a decent debut on the BSE SME platform on Friday, January 31, with its shares listing at an 8% premium over their issue price.

Shares of the company were listed at ₹81 apiece on the BSE against the issue price of ₹75 per piece. However, after listing at a premium, the stock failed to hold the momentum and dropped as much as 5% to hit the lower circuit limit of ₹76.95 apiece. The stock was trading at ₹77, up 2.66% from the issue price, later in early trade.

More than 9.78 lakh equity shares changed hands on the bourse. The total turnover was ₹7.82 crore. The market capitalisation reached ₹ 105 crore.

At the listing price of ₹81 per share, the value of a single lot of shares bagged by investors in the IPO share allotment stood at ₹1,29,600 (₹81 x 1,600).

IPO investors would have made listing gains of ₹9,600 per lot as the minimum investment in a single lot was ₹1,20,000 (₹75 x 1,600).

H.M. Electro Mech garners ₹27.74 crore through IPO

H.M. Electro Mech Ltd garnered ₹27.74 crore through its initial public offering from January 24 to January 28. The IPO was a fresh issuance of 36.99 lakh equity shares priced at ₹71 to ₹75 per share.

On the final day, the infrastructure company’s SME IPO was booked more than 93 times. The IPO received strong bidding from non-institutional investors (NIIs). Applications for nearly 23 crore shares were received compared to 24.6 lakh equity shares on offer.

Retail investors placed bids for over 12.02 crore shares against 12.3 lakh on offer, leading to an overbooking of 97.73 times. The NIIs submitted bids for 9.73 crore shares compared to 5.28 lakh shares, resulting in an oversubscription of 184.34 times. The qualified institutional buyers (QIBs) placed bids for more than 1.26 crore shares compared to 7.02 lakh shares. The QIBs quota was booked 18 times.

H.M. Electro Mech Ltd provides services related to supply, installation, testing, and commissioning of pumping machines and comprehensive operation and maintenance. Earlier, its core business was infra projects related to water supply schemes involving pumping machines and allied accessories for water and waste water. It has diversified into electrification projects with Indian railways, Nationalized Banks, and Municipal Corporations.

It has also started EPC (Engineering, Procurement and Construction) field projects which involves laying cross country pipe line and civil work related to water supply projects including construction of water treatment plant (WTP), Civil Work for Pump Houses, Diesel Generating Sets, Panel Room, Instrumentation, PLC-SCADA. The company has proposed to utilise ₹21 crore of IPO proceeds for funding working capital requirements.

H.M. Electro Mech posted a total income of ₹45.42 crore for the April-September period of FY 2024-25. Its net profit stood at ₹3.34 crore during the six-month period under review. For 2023-24, it reported a revenue of ₹117.29 crore and a net profit of ₹8.18 crore.