The IPO of Hyderabad-based Power Mech Projects received 45.2% subscription on the second day of bidding. The Motilal Oswal-backed company received bids for 13.51 lakh shares against a total of 29.88 lakh shares available in the net offer. The company has 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.
According to the combined data available from BSE and NSE, the company received maximum subscription in retail category in which investors placed bids for 11.48 lakh shares, resulting in a subscription of 76.8%. Subscription in the non institutional investor (NII) category was 16.2% as HNI investors bid for 1.03 lakh shares. Meanwhile, qualified institutional buyer (QIB) category received bids for 1 lakh shares, resulting in subscription of 11.7%.
Power Mech Projects’ IPO Bidding (as on 10 August 2015)
|Sr.No.||Category||No. of shares offered||No. of shares bid for||Subscription (%)|
|1||Qualified Institutional Buyers (QIBs)||853800||100000||11.7|
|2||Non Institutional Investors||640350||103740||16.2|
|3||Retail Individual Investors (RIIs)||1494150||1147980||76.8|
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.