H.M. Electro Mech Limited is coming up with an IPO with a fresh issue of 36,99,200 shares worth INR 27.74 crores. The company aims to meet working capital requirements and general corporate purposes. 

H.M. Electro Mech IPO – Important Dates 

Read more about HM Electro Mech SME IPO GMP

HM Electro Mech SME IPO – Company Profile 

H.M. Electro Mech Limited specialises in turnkey projects for pumping machinery, water supply schemes, electrification, and EPC services. ISO 9001:2015 certified, the company is authorised for extensive electrical and infrastructure work. 

The company serves government, municipal, banking, and educational clients nationwide, excelling in WTPs, pipelines, electrification, and railway systems under initiatives like “Nal se Jal,” leveraging strategic expansion, skilled resources, and competitive bidding processes. 

The company aims to be a top engineering and construction leader by driving growth through innovation, collaboration, customer satisfaction, and ethical practices and fostering employee engagement, leadership, and engineering excellence in a value-driven professional environment.

HM Electro Mech IPO Fundamental Analysis 

H.M Electro Mech Limited’s financial analysis reveals a mixed performance. Revenue increased steadily, but declining profitability, EPS, and RoNW, coupled with weaker liquidity and inventory turnover, highlight mixed performance despite asset growth and reduced debt dependence. 

• Revenue Trend: The revenue increased from ₹10,148.70 lakhs in March 2023 to ₹11,703.45 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 4,539.59 lakhs.
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹601.15 lakhs in March 2023 to ₹333.89 lakhs by September 2024. This decline in profitability could be a source of concern among investors. 
• Earnings per Share (EPS): The diluted EPS has reduced from ₹6.01 in March 2023 to ₹3.34 by September 2024, reflecting lower earnings per share for investors. 

• Return on Net Worth (RoNW): The RoNW has reduced from 24.96% to 9.43%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.

• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

H.M. Electro Mech IPO Financial Analysis 

HM Electro Mech SME IPO Peer Comparison 

H.M. Electro Mech Limited and HEC Infra Projects Limited show diverse standalone performance. While one demonstrates steady growth and a strong market presence, the other reflects competitive returns, highlighting distinct strengths in the infrastructure and engineering sectors. 

HM Electro Mech IPO Objective 

The main objective of H.M. Electro Mech Limited is to meet working capital requirements. 

1. To Meet Working Capital Requirements: The company intends to utilise INR 21 crores from IPO proceeds to meet increasing working capital needs driven by growing projects, revenue, trade receivables, and goods in the job, ensuring timely payments and operational efficiency. 

2. General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including acquiring property, hiring resources, strategic alliances, funding growth, servicing debt, capital expenditure, working capital, and meeting business or contingency expenses. 

H.M. Electro Mech IPO Risks And Challenges 

H.M. Electro Mech Limited’s risk includes revenue concentration in Gujarat and Rajasthan, reliance on a rent-free NOC, and potential project delays or cancellations, impacting cash flow, operational continuity, and financial performance. 

• The company’s revenue concentration in Gujarat and Rajasthan poses risks from regional slowdowns, policy changes, and limited diversification. Mitigating these risks may not entirely prevent adverse impacts on business and financial performance. 

• The company’s reliance on a rent-free NOC for its registered office poses risks of operational disruption and financial impact if terminated or non-renewed, requiring alternative premises and potentially affecting business operations and economic performance. 

• The company’s ₹41,034.41 lakh Order Book reflects anticipated revenues but is subject to project delays, cancellations, or defaults. Realisation of earnings may vary significantly due to external factors impacting cash flow, revenues, and profitability. 

HM Electro Mech IPO – Industry & Market Potential 

India’s industrial fasteners market is projected to reach ₹460 billion by 2023, with the steam boiler systems market at $22.56 billion by 2027, while the switchgear market is expected to grow significantly through 2023. 

India’s services sector, contributing 53% to GDP in FY22, drives economic growth with strong GVA increases, boosted by contact-intensive services. The IT and business services market is projected to reach $19.93 billion by 2025. 

The capital goods sector in India, contributing 12% to manufacturing and 1.8% to GDP, is poised for growth, with the electrical equipment market reaching $72 billion by 2025 and engineering goods exports at $111.63 billion in FY22. 

HM Electro IPO – Type of Offer 

H.M. Electro Mech Limited is coming up with an IPO with a fresh issue of 36,99,200 shares worth INR 27.74 crores. The company aims to meet working capital requirements and general corporate purposes. 

H.M. Electro Mech IPO Offer Size 

The offer size of HM Electro Mech Limited is INR 27.74 crores, consisting of a fresh issue of 36,99,200 shares. The company aims to meet working capital requirements and general corporate purposes. 

HM Electro Mech IPO Allotment Structure 

H.M Electro Mech Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,85,600 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 1,85,600 shares, are reserved for market makers. 

How to apply for H.M Electro Mech IPO?

To apply for the H.M Electro Mech Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the H.M Electro Mech Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the H.M Electro Mech Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check H.M Electro Mech IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the H.M Electro Mech Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the H.M Electro Mech Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the H.M Electro Mech Limited IPO:

● Registrar’s Website: Visit the website of Cameo Corporate Limited, the registrar of the H.M Electro Mech Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● NBE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

H.M Electro Mech Ltd IPO Offer Registrar

The registrar for the H.M Electro Mech Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

CAMEO CORPORATE SERVICES LIMITED

“Subramanian Building”, No. 1, 

Club House Road, Chennai – 600 002, India

Tel. Number: +91-44-4002 0700 / 2846 0390

Email Id: [email protected]

Website: www.cameoindia.com 

HM Electro Mech IPO – FAQs