Power Mech Projects IPO opens tomorrow

Price band fixed at Rs 615 - Rs 640 per share

The initial public offer (IPO) of Power Mech Projects will open tomorrow, 7 August 2015. The IPO of 42.69 lakh equity shares will close on 11 August 2015. The company has fixed the price band at Rs 615 to Rs 640 per equity share.

The issue comprises fresh offer of 21.28 lakh equity shares. In addition, there is an offer for sale of 21.41 lakh equity shares of Rs 10 each by the existing shareholders India Business Excellence Fund I, India Business Excellence Fund and two individuals (P. Srinivasa Rao and D. Aakashnag).

Post offer, the holdings of India Business Excellence Fund I and India Business Excellence Fund will come down to around 1.28% and 1.27%, respectively, while the two individual shareholders will not hold any share.

Power Mech is engaged in three business verticals, including erection, testing and commissioning of boilers, turbines and generators and balance of plant (BOP) for power sector, operation and maintenance and civil works which include construction jobs for the main plant and BOP requirements.

Power Mech Projects intends to utilize the proceeds of the fresh issue of Rs 105 crore for working capital requirements and for general corporate purpose.

Power Mech Projects reported net profit of Rs 70.70 crore on net sales of Rs 1355.61 crore in the year ended March 2015.

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