H.M. Electro Mech shares debuted at ₹81 on BSE SME, an 8% premium over the ₹75 issue price. The IPO saw an oversubscription of 91.75 times, with strong interest from retail and institutional investors.
H.M. Electro Mech made a solid market debut on January 31, 2025, with shares listing at ₹81 on the BSE SME platform, a premium of 8% over the issue price of ₹75.
The company’s initial public offering (IPO) successfully raised ₹27.74 crore, with a price band of ₹71-75 per share. The IPO saw tremendous investor demand, closing 91.75 times oversubscribed.
The offering, which ran from January 24 to January 28, 2025, had retail investors bidding 95.55 times the available shares, while the non-institutional investor category was subscribed 183.65 times.
Qualified Institutional Buyers also showed significant interest, with their quota oversubscribed 16.01 times.
The net proceeds from the public offer will be used for working capital requirements and general corporate purposes.
Founded in 2003, H.M. Electro Mech focuses on turnkey infrastructure projects, particularly in electrification for Indian Railways, and EPC projects involving water supply systems.
H.M. Electro Mech initially focused on infrastructure projects related to water supply systems, particularly those involving pumping machinery and related components for water and wastewater management.
Over time, the company expanded its scope into electrification projects for Indian Railways, nationalised banks, and municipal corporations.
More recently, it has entered the Engineering, Procurement, and Construction (EPC) sector, which includes projects like laying cross-country pipelines and performing civil works.
These projects also encompass the construction of water treatment plants (WTP), pump houses, diesel generators, panel rooms, and systems for instrumentation and PLC-SCADA.
For its EPC projects, H.M. Electro Mech collaborates with other companies to handle the civil construction aspects.
Since 2018, the company has completed 16 projects valued at ₹132 crore. At present, it is engaged in 37 ongoing projects with a combined worth of ₹410 crore. Of these, it expects to recognise ₹227 crore in revenue by September 2024.
For the financial period ending September 2024, the company reported total revenues of ₹45 crore and a net profit of ₹3.33 crore.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 31, 2025, 10:26 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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