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

 

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

Coming from a family of investors and financial analysts, Krishna learnt wading through regulatory filings pretty early in her career. At IPO Central, Krishna plays twin roles of contributor and head of research desk. She can also be reached at +krishnabagra .

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