Power Mech Projects’ IPO closed on a strong note on Tuesday even as secondary markets declined nearly 1% and the rupee slipped below 64. The pubic issue was subscribed nearly 38 times.
Qualified institutional buyers bid for more 2.35 crore shares against 8.54 lakh shares reserved for the category.
The non-institutional category subscribed 133.29 times. The HNIs bid for 8.53 crore shares against 6.4 lakh reserved for them. The high interest is due to the attractive margin funding and rise in grey markets premium.
In the grey market, the premium on Power Mech’s shares was quoting at Rs 125-150 per share on the final day.
The retail book was subscribed 3.17 times. Retail investors, whose investment should not exceed a total Rs 2 lakh as per Sebi rules, bid for 47.33 lakh shares against 14.94 lakh shares reserved for them.
Hyderabad-based Power Mech has fixed a price band of Rs 615-640 per share. The company aimed to raise between Rs 262.5 crore and Rs 273.2 crore from the public issue by selling a total 42.69 lakh shares
The company had raised Rs 81.96 crore from anchor investors in a pre-IPO placement. The list of anchor investors included DSP Blackrock India Tiger Fund, Morgan Stanley Mauritius Company, L&T Mutual Fund Trustee and Business Cycles Fund and SBI Magnum Multicap Fund.