Muted response to Power Mech Projects’ IPO on first day, 6.6% subscription


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


Read Also: IPO Central Analysis: Power Mech Projects’ INR273.2 crore IPO

Analysts at various brokerage houses have sounded positive reviews, although most have highlighted that this is a long term story.

Read Also: Analysts put long term buy rating on Power Mech Projects IPO



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