H.M. Electro Mech Ltd. Makes a Modest Debut on BSE SME, Lists at 8% Premium
H.M. Electro Mech Ltd. marked its entry on the BSE SME platform on Friday, January 31, 2025, with an 8% listing premium over its issue price. However, the stock faced immediate selling pressure and lost momentum shortly after its debut.
Stock Performance on Listing Day
- Listing Price: ₹81 per share (compared to issue price of ₹75)
- Initial Gain: 8% premium at the time of listing
- Lowest Point: ₹76.95 per share, hitting the lower circuit limit (-5% from opening price)
- Current Trading Price: ₹77 per share (+2.66% from the issue price)
- Market Capitalization: ₹105 crore
- Total Traded Volume: 9.78 lakh shares
- Total Turnover: ₹7.82 crore
Investors who secured an allotment in the IPO at ₹75 per share saw an initial listing gain of ₹9,600 per lot, with each lot containing 1,600 shares. At the listing price of ₹81 per share, a full lot was valued at ₹1,29,600.
H.M. Electro Mech Ltd. Raises ₹27.74 Crore Through IPO
The H.M. Electro Mech IPO, which ran from January 24 to January 28, 2025, was entirely a fresh issue of 36.99 lakh equity shares. The price band was set between ₹71 and ₹75 per share.
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Subscription and Investor Response
The IPO saw strong investor demand, particularly from non-institutional investors (NIIs). By the final bidding day, the issue was oversubscribed 93 times:
- Retail Investors: 12.02 crore bids vs. 12.3 lakh shares on offer (97.73x subscription)
- Non-Institutional Investors (NIIs): 9.73 crore bids vs. 5.28 lakh shares on offer (184.34x subscription)
- Qualified Institutional Buyers (QIBs): 1.26 crore bids vs. 7.02 lakh shares on offer (18x subscription)
This high demand indicates strong investor confidence, particularly among retail and NII investors.
Company Overview: H.M. Electro Mech Ltd.
H.M. Electro Mech Ltd. is a company specializing in the supply, installation, testing, and commissioning of pumping machines and other infrastructure-related services. Initially, its core focus was on water supply schemes, but the company has now expanded into:
- Electrification projects for Indian Railways, Nationalized Banks, and Municipal Corporations.
- EPC (Engineering, Procurement, and Construction) projects involving:
- Laying of cross-country pipelines
- Construction of water treatment plants (WTP)
- Civil infrastructure work for water supply projects, including pump houses, diesel generating sets, and control panels with PLC-SCADA instrumentation.
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Use of IPO Funds
The company has planned to utilize ₹21 crore from the IPO proceeds for working capital requirements, ensuring smooth execution of its ongoing and future projects.
Financial Performance
H.M. Electro Mech has shown consistent financial growth over the past few years. In the first half of FY 2024-25 (April–September period), the company reported a total income of ₹45.42 crore and a net profit of ₹3.34 crore. For the entire FY 2023-24, H.M. Electro Mech achieved a total revenue of ₹117.29 crore and a net profit of ₹8.18 crore. The company’s strategic expansion into electrification and EPC projects is anticipated to drive future revenue growth and enhance profitability. These key financial highlights underscore the company’s robust performance and promising outlook.
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Final Thoughts
H.M. Electro Mech Ltd. made a modest debut on the BSE SME platform, with an initial listing gain of 8%. However, the stock soon faced selling pressure, indicating a lack of sustained buying interest post-listing.
With a strong IPO subscription rate and diversified business expansion, the company has positioned itself as a key player in the infrastructure and water management sector. Investors will now be watching how the company executes its projects and utilizes its IPO proceeds to drive future growth.
