Power Mech IPO sees strong demand, subscribed over 38 times

Witnessing a strong investor response, the Rs 273-crore initial public offer (IPO) of Power Mech Projects, a power infrastructure services company, was over-subscribed 38.10 times on the last day of the offer today.
The IPO received bids for 11.38 crore shares as against 29.88 lakh shares on offer, as per the data available with the NSE till 1900 hrs, thus generating demand for shares worth over Rs 10,000 crore.
The public offer had opened for subscription on Friday.
Power Mech is the 10th company to hit the capital markets this year.
The overall public issue comprises 42,69,000 equity shares (including anchor portion of 12,80,700 shares).

The price band for the issue was fixed at Rs 615-640 per share.

Based on the price band, the company could garner between Rs 262.5 crore and Rs 273.2 crore through its initial share sale programme.
The firm has raised Rs 82 crore from anchor investors.
The proceeds of the issue would be utilised towards expanding the company's presence globally and to meet working capital requirements.
The IPO is being managed by Kotak Mahindra Capital, IIFL Holdings and Motilal Oswal Investment Advisors.
Power Mech is engaged in three business verticals, including manufacturing, 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.

So far in 2015, nine firms have mobilised nearly Rs 4,400 crore through IPOs, higher than total funds raised in the preceding two years.
In recent times, Syngene International IPO was over- subscribed 32.03 times and VRL Logistics was a top draw as the issue was subscribed over 74 times.