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