IPO Details

Bidding Dates

24 Jan '25 - 28 Jan '25

Minimum Investment

₹1,20,000 / 1 Lot (1,600 Shares)

Price Range

₹71-₹75

Maximum Investment

₹1,20,000 / 1 Lot (1,600 Shares)

Retail Discount

To be announced

Issue Size

₹27.74 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |  

H.M. Electro Mech IPO Important Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Jan 24, 25

IPO Closing Date

Jan 28, 25

Basis of Allotment

Jan 29, 25

Initiation of Refunds

Jan 30, 25

IPO Listing Date

Jan 31, 25

HM Electro Mech IPO Subscription Details

DateQIBNIIRetailTotal

Day 1Jan 23, 2025

 0 3.04 10.22 5.76

About H.M. Electro Mech IPO

The H.M. Electro Mech IPO is a book-built issue valued at ₹27.74 crore, consisting of a fresh issue of 36.99 lakh equity shares. The IPO will open for public bidding today i.e. on January 24, 2025, and close on January 28, 2025. Allotment of shares is expected to be finalised on January 29, 2025, with a tentative listing date on January 31, 2025, on the BSE SME platform.

The price band for the H.M. Electro Mech IPO is set at ₹71 to ₹75 per share. Retail investors can apply with a minimum lot size of 1,600 shares, requiring an investment of ₹1,20,000. High-net-worth individuals (HNIs) need to apply for a minimum of 2 lots, equating to 3,200 shares, with an investment of ₹2,40,000.

Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the IPO. Cameo Corporate Services Limited serves as the registrar, and Spread X Securities Private Limited is the market maker.

Investors interested in the H.M. Electro Mech IPO can find detailed insights and disclosures in the Red Herring Prospectus (RHP). This IPO offers an investment opportunity in a promising SME sector company.

Industry Outlook

  1. The services sector contributed 57% to India's Gross Value Added (GVA) in FY24 (April-September) and experienced an 11.43% YoY growth in GVA, reaching ₹72.69 trillion. This growth highlights a strong demand for service-related industries, which aligns with H.M. Electro Mech Limited’s focus on delivering quality engineering services.
  2. India’s engineering sector, accounting for 27% of total factories and 63% of foreign collaborations, has been a strategic pillar for industrial growth. With 100% FDI permitted and a market valuation of $43.2 billion in FY22, the sector's growth boosts opportunities for companies like H.M. Electro Mech Limited to expand their market presence.

H.M. Electro Mech IPO Objectives 

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. The company aims to allocate funds towards supporting day-to-day operations and ensuring smooth business activities.
  2. The remaining funds will be used for general corporate purposes.

About H.M. Electro Mech Limited 

H.M. Electro Mech Limited, established in 2003 as M/s H.M. Engineers, transitioned into a public limited company in 2018 under the Companies Act, 2013. It specialises in turnkey projects, including the supply, installation, testing, and maintenance of pumping machinery and water supply infrastructure. 

Over time, the company diversified into electrification projects for Indian Railways, municipal corporations, and nationalised banks, as well as EPC projects, such as water treatment plants, pipeline installation, and civil works for pump houses.

The company holds ISO 9001:2015 certification and is a Class ‘AA’ contractor with the Gujarat government, authorised to execute electrical installations. Since 2018, it has completed 16 projects worth ₹13,209.82 lakh and is engaged in 37 ongoing projects valued at ₹41,034.41 lakhs, with ₹22,732.05 lakhs of revenue recognised by September 2024. H.M. Electro Mech’s major clients include state and central governments, municipal corporations, and the banking sector.

With a registered office in Gujarat contributing 84% of FY24 revenue, the company has expanded operations to Rajasthan, Maharashtra, Punjab, and other regions. It secures projects through competitive bidding, offering flexible payment terms and tailored pricing. Notable achievements include contributions to the “Nal Se Jal” scheme, railway electrification projects, and smart metering systems. 

How To Check the Allotment Status of the H.M. Electro Mech IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app.
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for H.M. Electro Mech IPO Online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the H.M. Electro Mech IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of H.M. Electro Mech IPO 

Registered office: 305, Ashram Avenue, B/H. Kochrab Ashram, Paldi, Ahmedabad, Gujarat, 380006, India

Phone:  +91 079 40092538

E-mail: cs@hmelectromech.com

H.M. Electro Mech IPO Reservation

Investor Category

Shares Offered

Anchor Investor Shares 

10,52,800 (28.46%)

Market Maker Shares

1,85,600 (5.02%)

QIB Shares

7,02,400 (18.99%)

NII (HNI) Shares

5,28,000 (14.27%)

Retail Shares

12,30,400 (33.26%)

H.M. Electro Mech IPO Lot Size

Application

Lots

Shares

Amount

Retail (Min)

1

1,600

₹1,20,000

Retail (Max)

1

1,600

₹1,20,000

HNI (Min)

2

3,200

₹2,40,000

H.M. Electro Mech IPO Anchor Investors Details

H.M. Electro Mech IPO Secures ₹7.90 Crore from Anchor Investors.

Bid Date

January 23, 2025

Shares Offered

10,52,800

Anchor Portion Size (In ₹ crore)

7.90

Anchor lock-in period end date for 50% shares

February 28, 2025

Anchor lock-in period end date for remaining shares

April 29, 2025

H.M. Electro Mech IPO Promoter Holding

The promoters of the company are Dipak Padmakant Pandya, Mahendra Ramabhai Patel, Varsha Mahendra Patel and Mita Dipak Pandya.

Share Holding Pre-Issue

97.47%

Share Holding Post Issue

71.15%

Key Performance Indicators for H.M. Electro Mech IPO

As of March 31, 2024, the market capitalisation of H.M. Electro Mech's IPO is ₹102.74 crore. Here are the KPIs of H.M. Electro Mech:

KPI

Value

RoE (%)

29.06

RoCE (%)

33.28

Debt/Equity (x)

0.38

RoNW (%)

25.37

PAT Margin

6.99

Price Metrics

Metric

Pre-IPO

Post-IPO

EPS (₹)

8.19

4.87

P/E (x)

9.16

15.39

Note: The Pre-IPO EPS is derived using the pre-issue shareholding as of the RHP date and the earnings for the fiscal year ending March 31, 2024. The Post-Issue EPS is calculated based on the post-issue shareholding and the annualised earnings as of September 30, 2024, as stated in the RHP.

H.M. Electro Mech IPO Prospectus

H.M. Electro Mech IPO Registrar and Lead Managers

H.M. Electro Mech IPO Lead Managers

  • Beeline Capital Advisors Private Limited

Registrar for H.M. Electro Mech IPO

 Cameo Corporate Services Limited

H.M. Electro MechIPO Registrar

Financial Performance of H.M. Electro Mech Limited

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ lakh) 11,703.45 10,148.70 6,184.32
Profit After Tax (PAT) (in ₹ lakh) 818.61 601.15 258.00
Total Borrowings (in ₹ lakh) 1,225.41 639.59 18.18
Earnings Per Share (in ₹) 8.19 6.01 2.58
Return on capital employed (%) 33.28 36.17 19.35
Current Ratio (x) 1.51 1.49 1.35
Debt-Equity ratio (x) 0.38 0.27 0.01

Know before investing

Strengths

8

  1. Offers comprehensive solutions from project conception to maintenance, streamlining processes.

  2. Strong partnerships with OEMs enable competitive pricing and swift delivery.

  3. Agile decision-making ensures timely project execution and client satisfaction.

  4. Promoters bring over 20 years of expertise in electro-mechanical projects.

  5. A robust order book with 37 projects worth ₹41,034.41 lakh ensures growth.

  6. High employee retention ensures operational stability and consistent client service.

  7. Focuses on enhancing execution capabilities for improved margins and satisfaction.

  8. Leveraging industry relationships to maintain competitive edge and market presence.

Risks

8

  1. The company generates 84.44% and 83.46% revenue from Gujarat and Rajasthan, making the business vulnerable to region-specific challenges.

  2. Non-renewal of NOC for the registered office may disrupt operations.

  3. Legal proceedings against the company, promoters, and directors may impact results.

  4. Negative cash flow from operations and financing may hinder growth.

  5. Order book uncertainties may affect income, profits, and project execution.

  6. Working capital-intensive operations require ₹654.64 lakh in short-term borrowings.

  7. Dependence on third-party suppliers exposes risks of cost hikes and delays.

  8. High geographical dependency exposes the company to regional economic risks.

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H.M. Electro Mech Limited Peer Details Comparison

Company Name RoE (%) EBITDA (₹ in lakh) PAT Margin (%) RoCE (%)
H.M. Electro Mech Limited 29.06 1255.88 6.99 33.28
HEC Infra Projects Limited 14.51 525.90 6.39 9.16

H M Electro Mech IPO FAQs

What is the H.M. Electro Mech IPO?

H.M. Electro Mech IPO is a book-built issue IPO. It will be open from January 24, 2025, to January 28, 2025.

When will the H.M. Electro Mech IPO be allotted?

The Basis of Allotment will happen on Wednesday, January 29, 2025.

When will the H.M. Electro Mech IPO open for subscription?

The IPO subscription window will open on January 24, 2025.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 1,600 shares.

When will H.M. Electro Mech Limited list on exchanges?

The listing date for H.M. Electro Mech Limited is Friday, January 31, 2025.

What is the issue size of the H.M. Electro Mech IPO?

The issue size of the H.M. Electro Mech IPO is up to ₹27.74 crore, with a fresh issue of ₹27.74 crore.

What are the open and close dates of the H.M. Electro Mech IPO?

The open and close dates for H.M. Electro Mech IPO is from January 24, 2025, to January 28, 2025.

What would be the listing gains on the H.M. Electro Mech IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to increase your chances of getting a H.M. Electro Mech IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for the H.M. Electro Mech IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of H.M. Electro Mech Limited using one PAN?

You can submit only one application using your PAN card.

How to read H.M. Electro Mech Limited's financial statements?

To read H.M. Electro Mech’s financial statements, download the IPO’s  RHP document.

What is 'pre-apply' for H.M. Electro Mech Limited IPO?

Pre-apply allows investors to apply for the  H.M. Electro Mech  IPO two days before the subscription period opens, ensuring an early submission of your application.

If I pre-apply for the H.M. Electro Mech Limited IPO, when will my order get placed?

Your order will be placed when the IPO opens for bidding, and a UPI request will follow within 24 hours.

When will I know if my H.M. Electro Mech Limited IPO order is placed?

You will receive a notification once your order is successfully placed with the exchange after the bidding starts.

Who is the registrar of H.M. Electro Mech IPO?

Cameo Corporate Services Limited is the registrar responsible for managing the IPO allotment process and handling investor queries.

Where is the H.M. Electro Mech IPO getting listed?

H.M. Electro Mech Limited IPO is proposed to be listed on the SME platform of the Bombay Stock Exchange (BSE).