Power Mech Projects raises Rs 81.96 crore from anchor investors

Allots 12.80 lakh shares to seven investors

Power Mech Projects raised Rs 81.96 crore from anchor investors yesterday, 6 August 2015. The company allotted 12.80 lakh shares to seven investors, which include DSP Blackrock India Mutual Fund (DSP MF), SBI Mutual Fund (SBI MF), L&T Mutual Fund (L&T MF), HDFC Mutual Fund (HDFC MF), IDFC Mutual Fund (IDFC MF), Morgan Stanley Mauritius Company and Tata AIA Life Insurance Co. The shares were allotted at Rs 640 per share, which is the top end of the Rs 615 to Rs 640 per share price band for the IPO.

Among anchor investors, IDFC MF bought 4.06 lakh shares, DSP MF acquired 2.18 lakh shares, two funds under SBI MF bought a total of 2.18 lakh shares, two funds under HDFC MF acquired a total of 1.09 lakh shares, two funds under L&T MF bought a total of 78,140 shares, Morgan Stanley Mauritius Company acquired 1.40 lakh shares and Tata AIA Life Insurance Company acquired 1.09 lakh shares.

Anchor, or cornerstone investors, are institutional investors which are given allotment on a discretionary basis just before the opening of the IPO to instill confidence in the issue. Shares allotted to anchor investors have a lock-in for 90 days.

Book Building for the initial public offer (IPO) of Power Mech Projects began today, 7 August 2015. The IPO will close on 11 August 2015.

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 viz. 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 an integrated power infrastructure services provider. The company 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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