HM Electro Mech made an impressive debut on the stock market on January 31, with shares listed at ₹81 on the BSE SME platform. This price reflects an 8% premium over the issue price of ₹75.
Strong Response to the IPO
HM Electro Mech’s ₹27.74 crore IPO, which was open for subscription from January 24 to January 28, received an overwhelming response.
The price range for the SME IPO was ₹71-75 per share. During the three-day subscription period, the IPO was oversubscribed by 91.75 times, with 22.57 crore shares bid for, far exceeding the 24.60 lakh shares offered.
The retail investors’ portion was subscribed 95.55 times, while Non-Institutional Investors (NII) showed even stronger demand, subscribing 183.65 times. The Qualified Institutional Buyers (QIB) category saw a 16.01 times subscription.
Details of the IPO
The HM Electro Mech IPO consisted entirely of a fresh issue of 36.99 lakh shares, with no offer for sale (OFS) portion. Retail investors could apply for a minimum of 1,600 shares, requiring an investment of ₹1.2 lakh.
The issue had specific reservations: 20% of the shares were set aside for QIBs, 15% for NIIs, and 35% for retail investors. Prior to the public offering, the company raised ₹7.9 crore from anchor investors on January 23, 2024.
The funds raised will be used to meet the company’s working capital needs and for general corporate purposes.
Beeline Capital Advisors Pvt Ltd served as the lead manager, with Cameo Corporate Services Limited acting as the registrar and Spread X Securities Private Limited as the market maker.
Key Details of the HM Electro Mech IPO
HM Electro Mech’s IPO consisted entirely of a fresh issue of 36.99 lakh shares, with no Offer for Sale (OFS). Retail investors could apply with a minimum lot size of 1600 shares, requiring an investment of ₹1.2 lakh.
The allocation of the issue was as follows:
1) 20% for Qualified Institutional Buyers (QIBs)
2) 15% for Non-Institutional Investors (NIIs)
3) 35% for Retail Investors
