Power Mech Projects raises INR82 crore from anchor investors

Power MechMotilal 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%

 

Power Mech Projects raises INR82 crore from anchor investors
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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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