The IPO of Motilal Oswal-backed Power Mech Projects received a muted response from investors on the first day. The issue managed to get a subscription of only 6.6% on the first day of bidding, according to the combined data available from BSE and NSE.
Yesterday, the company made an allotment of 12.8 lakh shares to 7 anchor investors at the higher end of its IPO price band of INR615-640 per share.
Maximum subscription was seen in the retail category where investors bid for 1.92 lakh shares against the 14.9 lakh shares. This resulted in a subscription of 12.9% in the category. Meanwhile, non institutional investors stayed away from the IPO and only 4,220 shares were received in the category. Not a single bid was placed in the qualified institutional buyer (QIB) category on the first day.
Power Mech Projects’ IPO Bidding (as on 7 August 2015) | ||||
| Sr.No. | Category | No. of shares offered | No. of shares bid for | Subscription (%) |
| 1 | Qualified Institutional Buyers (QIBs) | 853800 | 0 | 0 |
| 2 | Non Institutional Investors | 640350 | 4220 | 0.7 |
| 3 | Retail Individual Investors (RIIs) | 1494150 | 192380 | 12.9 |
| Total | 2988300 | 196600 | 6.6 | |
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Analysts at various brokerage houses have sounded positive reviews, although most have highlighted that this is a long term story.
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