Motilal Oswal-backed Power Mech Projects has 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. The Hyderabad-based power infrastructure services firm has raised IN81.96 crore by placing the shares with anchor investors which will have a lock in period of 30 days from the date of allotment.
Among the leading parties allotted shares is IDFC Premier Equity Fund which has been allocated 4.06 lakh shares. Another major allotee is DSP Blackrock which subscribed to 2.18 lakh shares. SBI’s Small and Midcap Fund was allotted 1.84 lakh shares. Here is the full list of anchor investors and the shares allotted to them.
|
Power Mech Projects’ allocation to anchor investors |
|||
| S. No. | Anchor Investor | Shares Allotted | % of anchor investor portion |
| 1 | IDFC Premier Equity Fund | 406,115 | 31.7 |
| 2 | DSP Blackrock India TIGER Fund | 218,615 | 17.1 |
| 3 | SBI Small and Midcap Fund | 183,356 | 14.3 |
| 4 | Morgan Stanley Mauritius Company Limited | 140,495 | 11.0 |
| 5 | TATA AIA Life Insurance Company | 109,360 | 8.5 |
| 6 | L&T Business Cycles Fund | 62,540 | 4.9 |
| 7 | HDFC Capital Builder Fund | 54,680 | 4.3 |
| 8 | HDFC Small and Midcap Fund | 54,680 | 4.3 |
| 9 | SBI Magnum Multicap Fund | 35,259 | 2.8 |
| 10 | L&T India Value Fund | 15,600 | 1.2 |
The IPO will open on Friday, 7 August for subscription and will close on Tuesday, 11 August. Unlike Syngene International, not many brokerages have come out with their recommendations, although Power Mech has done well on the pricing front, asking for a price earnings ratio of 10.7 at the lower end of the price band while the upper end stretches valuations to 11.1 times. IPO Central had an in-depth look at the red herring prospectus which can be accessed here.
Read Also: IPO Central Analysis: Power Mech Projects’ INR273.2 crore IPO
Here are some critical details about the IPO.
| IPO dates | 7 August 2015 – 11 August 2015 |
| Price band | INR615 – 640 per share |
| Total shares | 42.69 lakh shares |
| Offer for sale (OFS) | 21.41 lakh shares |
| Category allocation | QIB – 50%, NII – 15%, Retail – 35% |
| Lead managers | Kotak Mahindra Capital Company, IIFL Holdings and Motilal Oswal Investment Advisors |
| Minimum lot | 20 shares and in multiples thereafter |
| Minimum investment | INR12,300 – INR12,800 |
| Equity dilution | 29.02% |
