H.M. Electro Mech IPO - GMP, Date, Price, & Details

H.M. Electro Mech IPO-Complete Overview

H.M. Electro Mech IPO under the SME IPO category is a book-built issue of Rs.27.74 Cr (36.99 lac Shares) by H.M. Electro Mech Limited established in 2003 as a small infrastructure company that specializes in turnkey projects and supplies, installs, and tests the project, and finally commissions it. The company additionally deals with operation and maintenance contracts.

Broadly speaking, the company would be taking electrification projects for railways, banks, and municipal corporations. It is moving toward undertaking EPC projects; these include laying pipelines across the country and executing civil work for water supply projects perfect examples are water treatment plants, pump houses, diesel generator sets, panel rooms, instrumentation, and PLC-SCADA.

H.M. Electro-Mech, therefore, works with other companies to work on civil work for these EPC projects. The company does in addition sell products such as water pumps, pipes, transformers, and electric motors.

Therefore, its client base consists of many parts, including the State Government, Central Government, Municipal corporations, Banking sector, Educational Institutes, Builders & Developers, Real Estate, Hotels, and many more professional sectors. 

All the projects are supervised by the office in Delhi and the company operates in various parts of the country and has handled various contracts in Karnataka, Chandigarh, Rajasthan, Madhya Pradesh, Maharashtra, and Punjab.

H.M. Electro Mech Limited IPO Overview

This H.M. Electro Mech IPO date is 24 January, and its ‘initial public offering’ will end on 28 January 2025.    

This Rs.27.74 crore new SME IPO comprises a wholly fresh issue of 36.99 lac Shares. 

This upcoming IPO date is on 24 Jan 2025. The H.M. Electro Mech IPO Price is Rs.71 to Rs.75 for each Share. 

The expected IPO listing date is 31 Jan 2025, and the listing at BSE and SME.

Click to  open a demat account and apply for the IPO.

Company Financial

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Cash Flows

The cash flows for various activities are shown below:

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Category-wise Revenue Breakdown 

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Product-wise Revenue Breakdown 

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State-wise Revenue Breakdown 

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(Source: RHP)

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The Objective of The Issue

• Requirements for working capital.

• General corporate purposes.

 

Peers of H.M. Electro Mech Ltd.

Evaluation

The H.M. Electro Mech Limited IPO share price is Rs.71 to Rs.75 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.8.19 from the last year, the resulting P/E ratio is 9.16x.

Considering the weighted EPS of Rs.5.59 for the last three years, the P/E ratio is 13.42x.

IPO's Strengths

• End to end solutions that start with conceptualization down to its lifelong maintenance.

• Establishes partnership with leading manufacturers and OEMs that allows them to start with competitive reconversion costs.

• Guaranteeing quick decision-making process, leading to fast progression of project and client orientation.

• A very experienced team of managers.

• Prompt reaction is also found in the team-total mobilization of means in a crisis.

 

IPO’s Weaknesses

• Geographical Concentration of Revenue: Company revenue (more than 80% of the company revenue is produced in the states of Gujarat and Rajasthan). Adverse effects, e.g., changes in grammar, or the microeconomic landscape influencing those fields, could have consequences in both operations and finances.

• Dependence on Third-party Suppliers: The company is very dependent on third-party manufacturers and suppliers for machinery parts and materials. Delays, conflicts, or problems with such suppliers can impact a project's schedule and result in financial losses or reputational damage.

• Fluctuating Material Costs: From a long-term perspective, the absence of purchase contracts, for example, and therefore of the price provided by the suppliers, as well as the negative impact of this price on some preferred key materials, makes the companies more exposed to possible price shocks and also to potential lack of availability of the materials, which, in turn, can have a painful effect on margins and operations.

• Regulatory and Policy Risks: Changes in law, taxation, or regulation in India, alongside uncertainty as to their enforceability or interpretability and their actual application, may result in higher operating costs and business issues for the company.

 

 

H.M. Electro Mech IPO GMP Today

H.M. Electro Mech IPO GMP is Rs.20 as of 22 January 2025. With the price of Rs.75, the estimated H.M. Electro Mech listing price is Rs.95 at the time of writing this content.

IPO Timetable (Tentative)

The IPO opening date is January 24, with allotment on January 29, refund initiation on January 30, and listing on 31 January 2025.

H.M. Electro IPO Details 

The H.M. IPO with a Face Value of Rs.10 per share offers a total issue size of 36,99,200 Shares (Rs.27.74 Cr).

H.M. Electro Mech IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,20,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,40,000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of H.M. Electro Mech  Ltd.

• Dipak Padmakant Pandya

• Mahendra Ramabhai Patel

• Varsha Mahendra Patel

• Mita Dipak Pandya.
  
  

IPO Lead Managers

Beeline Capital Advisors Pvt Ltd.

Dividend Policy

The company has not declared a dividend in the last three FYs.

Conclusion

H.M. Electro Mech IPO offers an opportunity to get involved in the infrastructure and EPC project business. The firm, a government, and corporate customer base, has grown steadily, but it is subject to challenges, like supplier dependence and geographic revenue concentration. At a P/E ratio of 9.16x on FY 2024 earnings, the IPO price is pretty fair. Investors should consider both growth potential and risks before deciding.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company  Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

 

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