Power Mech IPO subscribed 38.1 times on final day, 3.4 times in retail category


Investors flocked to the IPO of Hyderabad-based Power Mech Projects on the final day of bidding in a strong indication of growing risk appetite in the new listing market. The Motilal Oswal-backed company received bids for 11.38 crore shares against a total of 29.88 lakh shares available in the net offer, resulting in total subscription of 38.1 times.

According to the combined data available from BSE and NSE by 7 PM, the company received maximum subscription in Non Institutional Investor (NII) category in which investors placed bids for 8.53 crore shares, resulting in a subscription of 133.2 times. Subscription in the retail category was 3.4 times as investors placed bids for 50.82 lakh shares. Meanwhile, qualified institutional buyer (QIB) category received bids for 2.35 crore shares, resulting in subscription of 27.5 times.

IPO Collage

The company had already 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. Including the anchor investor portion, the company is selling 42.69 lakh shares in the IPO.


Power Mech Projects’ IPO Bidding (as on 11 August 2015, 7 PM)

Sr.No. Category No. of shares offered No. of shares bid for Number of times subscription
1 Qualified Institutional Buyers (QIBs) 853800 23503380 27.5
2 Non Institutional Investors 640350 85304480 133.2
3 Retail Individual Investors (RIIs) 1494150 5082420 3.4
Total 2988300 113890280 38.1

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

Most brokerage houses have given favourable recommendations to the IPO but not without highlighting the pain points of high revenue concentration among top clients and stretched working capital cycle. IPO Central believes that while listing gains are possible in the IPO, investors will find better opportunities in coming months. Motilal Oswal is substantially cutting its shareholding in Power Mech Projects. In August, more IPOs are lined up, biggest being Dilip Buildcon.

Read Also: Four IPOs lined up in August; Dilip Buildcon, Prabhat Dairy and Navkar to follow Power Mech Projects

Today was also a day for listing of another blockbuster IPO of Syngene where investors made strong listing gains

Read Also: Stellar listing for Syngene, stock closes 24.2% above issue price


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