Power Mech IPO subscribed 7% on first day

The initial public offer of Power Mech Projects, a power infrastructure services company, was subscribed 7 per cent on the first day of offer today.
The IPO received bids for 1.96 lakh shares against the total issue size of 29.88 lakh shares, according to data available with the NSE till 1700 hours.
The portion reserved for non institutional investors was subscribed 1 per cent, while retail category received 13 per cent subscription.
The company's initial public offering (IPO) would close on August 11, 2015.
Power Mech is the tenth 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 has been 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 proceed of the issue would be utilised towards expanding the company's presence globally and to meet working capital requirements.
Kotak Mahindra Capital, IIFL Holdings and Motilal Oswal Investment Advisors will manage the company's IPO.
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.

So far in 2015, nine firms have mobilised nearly Rs 4,400 crore through IPOs, higher than funds raised in the preceding two years.