H.M. Electro Mech IPO Review: Apply or Avoid?

H.M. Electro Mech IPO is set to open for bidding on 24th January 2025. The issue has gained attention from investors for its tentative listing date of 31st January 2025. It is a fresh issue of 36,99,200 shares worth Rs 27.74 crore.  

H.M. Electro Mech IPO

H.M. Electro Mech IPO date is prescribed as 24th January 2025 to 28th January 2025. The face value of H.M. Electro Mech Limited shares stands at Rs 10 per share, and the IPO price band is fixed at Rs 71 to Rs 75 per share.  

Cameo Corporate Services Limited is the registrar of this IPO awaiting to finalise allotment status and refund initiation process. To have detailed information about the IPO or company’s financial position, you can download H.M. Electro Mech IPO RHP. You can also check further IPO details in the table below. 

H.M. Electro Mech IPO Details: Check Issue Size, Price, and Offer 

H.M. Electro Mech IPO is all set to open for bidding for a fresh issue of 36,99,200 shares worth Rs 77.74 crore. H.M. Electro Mech Limited shares will likely list on BSE & SME. On the other hand, the Securities Exchange Board of India (SEBI) has mandated companies to reserve specific parts of the issue for different categories of investors. 

Look at the table below for the segregation of shares offered to different investors. 

Note: NII (Non-Institutional Investors), sNII (Small Non-Institutional Investors), bNII (Big Non-Institutional Investors), QIB (Qualified Institutional Buyers). 

H.M. Electro Mech IPO GMP (Grey Market Premium)

Do you want to have live updates on H.M. Electro Mech IPO GMP? If yes, you’ve reached the right spot. Explore the table below to check daily IPO GMP updates. It is to be noted that the GMP figure is subject to change daily on the basis of market conditions and trends. Check for the live GMP price before applying for an IPO. 

*Data is updated as of 27th January 2025.

H.M. Electro Mech IPO Review

Besides consistent growth in H.M. Electro Mech Limited’s revenue and PAT (profit after tax), there could be a chance or risk in this IPO. It is essential to conduct thorough research on the IPO to avoid significant losses in the share market. Here is the H.M. Electro Mech IPO analysis to help you make a verdict on its success and listing performance. 

1. Financial Health

It is important to assess the financial performance of an organisation before investing in it. To do so, one should consider multiple parameters. These include PAT margins, net assets, revenue growth, etc. 

During FY2023-24, the revenue of H.M. Electro Mech Limited stood at Rs 101.67 crore, which increased by 15.37% to Rs 117.30 crore. On the other hand, the PAT of the company was raised by 26.61% from Rs 6.01 crore to Rs 8.19 crore.

The consistent growth in the company’s financial performance indicates that H.M. Electro Mech IPO will likely get an impressive level of engagement from investors and may deliver significant returns on its tentative listing date, which is 31st January 2025. The above data is taken from published sources and for informational purposes only. Verify them by conducting a thorough research on the company’s financial figures. 

2. Technical Analysis 

Most people still need clarification on what technical parameters are to be considered to evaluate the stock potential in the coming time. Here are some technical indicators that might give you an idea about the potential of H.M. Electro Mech IPO.  

*Data is updated as of 23rd January 2025. 

The pre-issue PE ratio of H.M. Electro Mech Limited stands at 9.16. On the other hand, the company’s EPS is estimated as 8.19, which means the company is making around Rs 8 per share. 

3. Inventory Turnover Ratio

H.M. Electro Mech’s IPO analysis found a significant decrease in the company’s inventory turnover ratio. Thus, it can be concluded that the company faced difficulties in managing its inventory, which might impact its sales. Inefficient inventory management of H.M. Electro Mech Limited could be a point of concern for investors looking to apply for this IPO. 

4. H.M. Electro Mech Limited Peer Comparison

*Data is updated as of 23rd January 2025. 

Note: The data mentioned above highlights pre-issue figures. PE Ratio and EPS are subject to change post-issue. Have a look at the table below to get updated metrics. 

*Data is updated as of 23rd January 2025. 

H.M. Electro Mech IPO Subscription Status

As of 27th January 2025, the IPO is subscribed 17.92 times till 3:09:57 PM. Explore the table below for live H.M. Electro Mech IPO subscription status. 

*Data is updated as of 27th January 2025.

About H.M. Electro Mech Limited

H.M. Electro Mech Limited was incorporated in 2003 and is engaged in turnkey projects like installation, testing, supply, and commissioning of pumping machinery. It also offers maintenance services to the customers to retain them for longer periods of time. Customers of H.M. Electro Mech Limited include municipal banks, educational institutes, and government. The company also aims to become a leader in engineering and construction by offering cutting-edge and innovative solutions to its customers. 

H.M. Electro Mech Limited also focuses on innovation, collaboration, engineering excellence, and leadership to compete in the business environment. As per the recent updates, it has started EPC projects like civil work for water supply and cross-country pipelines. As per the data of September 2024, the company was working with 37 permanent employees and 107 contractors. It manages projects across diverse states of India, like Rajasthan, Maharashtra, Karnataka, Chandigarh, Punjab, and Madhya Pradesh.   

H.M. Electro Mech Limited’s Financials

To invest in H.M. Electro Mech IPO, individuals need to consider the financial performance of the company in the market. Explore the table below for a financial analysis of H.M. Electro Mech Limited. 

*Data is updated as of 23rd January 2025. 

Explanation

H.M. Electro Mech Limited has shown a 15.37% increase in its revenue during FY23-24 and a 26.61% rise in its profit after tax, which was estimated to be Rs 6.01 crore in FY2023 and reached Rs 8.19 crore in FY2024. 

H.M. Electro Mech IPO Bidding Requirements

The bidding requirement is also a part of H.M. Electro Mech IPO details. To make a bid for this IPO, you need to meet the requirements mentioned in the table below. 

Aim of H.M. Electro Mech IPO

With H.M. Electro Mech IPO, the company aims to raise Rs 27.74 crore. However, the company is set to utilise these funds at different places. Here are some of the secondary objectives of H.M. Electro Mech Limited for this IPO. 

• Working Capital: H.M. Electro Mech IPO is to raise Rs 27.74 crore to meet the company’s working capital requirement. The company will use these funds to manage their inventory efficiently. It might increase the inventory turnover ratio of the business in the coming decade.

• General Corporate Purposes: The remaining part of the fund will be utilised to meet general corporate purposes. Company will expand their business, market their products, and fund their subsidiaries. 

Risks For H.M. Electro Mech IPO

H.M. Electro Mech IPO analysis suggested higher listing gain expectations. However, it is essential to note that this IPO has different challenges or risks that might create uncertain returns. Explore the risks associated with this IPO. 

• Reliance on Rent-Free NOC

H.M. Electro Mech Limited relies heavily on rent-free NOC for its registered office. Any termination or non-renewal of NOC might create operational disruptions for the company. It may also impact the financial position of the business in the competitive market. 

• Revenue Concentration

As per the recent updates, H.M. Electro Mech Limited is facing revenue issues in Gujarat and Rajasthan. As a result, the company may have to shut down regional facilities or change policies. The chances for limited diversification in the near time could impact the stock performance of the business. 

• Delay in Projects

Undoubtedly, H.M. Electro Mech Limited has an order book worth Rs 41,034.50 lakh. However, any delay or cancellation of the project might significantly impact the company’s revenue and net cash flow.

Should I Invest in H.M. Electro Mech IPO?

Dilip Davda, the Editor at Chittorgarh Infotech Pvt. Ltd., provided an H.M. Electro Mech IPO review. In his review, he highlighted the company’s engagement in turnkey projects and steady growth. He also said, “Investors may park funds for the medium to long term”.

If you want to know whether you should apply for H.M. Electro Mech IPO or not, you can explore the pros and cons of the IPO mentioned below. 

Pros of H.M. Electro Mech IPO

• Robust engagement in turnkey projects on EPC contracts. 
• Consistent growth in financial performance. 

Cons of H.M. Electro Mech IPO

• High reliance on rent-free NOC.
• Significant decrease in inventory turnover ratio. 

It would be your own choice whether to apply for H.M. Electro Mech IPO or not. But, you can consider these pros and cons to make an informed investment decision. We suggest you conduct deep research on the fundamentals, financials, and technicals of the company to avoid significant losses on its tentative listing date of 31st January 2025.    

How to Apply for H.M. Electro Mech IPO?

Follow the steps mentioned below to apply for H.M. Electro Mech IPO. 

• Step 1: Conduct thorough research on H.M. Electro Mech IPO details like issue size, lot size, GMP updates, subscription status, and more. 
• Step 2: Open a demat account on Univest to apply for the IPOs. You can also use your previous demat account just by navigating to the IPO section. 
• Step 3: Place a bid for one lot of 1,600 shares worth Rs 1,20,000 of H.M. Electro Mech IPO.   
• Step 4: You will receive a mandate request on your mode of payment. Approve the request and stay informed about the allotment status.    

Check H.M. Electro Mech IPO Allotment Status

You can check for H.M. Electro Mech IPO allotment in different ways. These include BSE’s official website and registrar portal. Explore the steps mentioned below to know your allotment status online.

Check Through BSE

• Visit the BSE official website. 
• Select Equity as the issue type. 
• Choose Denta Water and Infra Solutions Limited IPO.  
• Select whether to proceed with the PAN number or application number.
• Submit your information to check the allotment status online. 

Check Through Registrar

• Visit the registrar portal. 
• Click on the allotment option.
• Fill in the required details.
• Click on the submit button to know your allotment status

Final Thoughts

H.M. Electro Mech IPO is the book-built issue of 36,99,200 shares worth Rs 27.74 crores. The shares are set to be listed on BSE and SME on the tentative listing date of 31st January 2025. Investors and brokers have a positive outlook for this IPO and highlighted its pros as engagement in turnkey projects and the steady growth potential of the company. However, the issue also consists of some challenges, like high reliance on rent-free NOC, decrease in inventory turnover ratio, and delay in project completion. It is recommended to conduct your own research on H.M. Electro Mech IPO details and reviews to generate higher listing gains. 

Open a demat account on Univest now to initiate your investment journey. The Univest Android app and Univest iOS app will provide you with a seamless interface and exclusive features to boost your returns.

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FAQs on H.M. Electro Mech IPO

1. How is H.M. Electro Mech IPO?

Ans. H.M. Electro Mech IPO GMP (Grey Market Premium) stands at Rs 24 (32.00% up) on 27th January 2025. It indicates that the estimated listing price could be Rs 99. It is entirely a fresh issue of 36,99,200 shares worth Rs 27.74 crore. The IPO price band is fixed at Rs 71 to Rs 75 per share, and the face value of each share is Rs 10.

2. What is the price of H.M. Electro Mech IPO?

Ans. H.M. Electro Mech IPO price band has been set between Rs 71 to Rs 75 per share. Retail investors can apply for a minimum and maximum of 1 lot consisting of 1,600 shares worth Rs 1,20,000. Moreover, NIIs are required to bid for a minimum of 2 lots (3,200) shares worth Rs 2,40,000. 

3. Is H.M. Electro Mech IPO good?

Ans. H.M. Electro Mech IPO has gained a positive rating from industry experts, brokers and institutional investors. The company has an order book worth Rs 41,034.50 lakh. Moreover, consistent growth in the financial position of H.M. Electro Mech Limited indicates that stocks could show an upside movement in the long-term. 

4. Who is the registrar of H.M. Electro Mech IPO?

Ans. Cameo Corporate Services Limited is the registrar of H.M. Electro Mech IPO and awaits to manage the IPO allotment procedure and refund initiation. For any query regarding H.M. Electro Mech IPO allotment and refund, you can reach out to Cameo Corporate Services Limited through cameo@cameoindia.com or +91-44-28460390. 

5. What is the issue size of H.M. Electro Mech IPO?

Ans. H.M. Electro Mech IPO is the fresh issue of 36,99,200 shares worth Rs 27.74 crore. The issue is set to open on 24th January 2025 and will be closed on 28th January 2025. 

Disclaimer: The above information is accumulated from authentic sources and is just for informational purposes. To have detailed information about H.M. Electro Mech IPO, download the H.M. Electro Mech IPO RHP and H.M. Electro Mech IPO DRHP. Conduct your own research before investing in IPOs to avoid significant losses. You can also consult your financial advisor.