H.M. Electro Mech Lists At 8 Pc Premium After IPO Sees 87X Oversubscription

(MENAFN- KNN India) New Delhi, Jan 31 (KNN) H.M. Electro Mech, an Ahmedabad-based infrastructure company, made a strong debut on the BSE SME platform today, with its shares listing at Rs 81, marking an 8 percent premium over its initial public offering (IPO) price of Rs 75.

The company's market entry follows an impressive showing in the primary market, where its IPO was oversubscribed by nearly 87 times during the subscription period from January 24 to January 28.

The infrastructure firm, which specialises in water supply schemes and electrification projects, raised Rs 27.74 crore through its public offering of 36.99 lakh shares.

The IPO was priced in a band of Rs 71 to Rs 75 per share. The company operates in the Engineering, Procurement, and Construction (EPC) sector, particularly focusing on water supply infrastructure, and has established strategic collaborations with other firms to handle the civil engineering aspects of its projects.

Management has indicated that the funds raised through the IPO will primarily be allocated to address working capital requirements, with a portion reserved for general corporate purposes.

The successful listing and significant oversubscription reflect strong investor confidence in H.M. Electro Mech's business model and growth prospects in India's infrastructure sector.

(KNN Bureau)

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