H.M. Electro Mech
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Jan 2025 – 28 Jan 2025
- Listing date
- 31 Jan 2025
- Face value
- ₹1 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹27.74 Cr
- Market cap at offer price
- ₹103 Cr
- Promoter holding
- 97.47% → 71.15% pre-issue → post-issue
- ISIN
- INE0DZD01015
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- 305, Ashram Avenue, B/H, Kochrab Ashram, Paldi, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 10,52,800 | — | — |
| Market maker | 1,85,600 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.19 | 4.87 |
| P/E (×) | 9.16 | 15.40 |
| Price to book (×) | 2.32 | — |
| Market cap | — | ₹103 Cr |
Key performance indicators
- Return on net worth
- 25.37%
- ROCE
- 33.28%
- Debt / equity
- 0.38
- PAT margin
- 6.99%
- NAV per share
- ₹32.27
- Price to book
- 2.32
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About H.M. Electro Mech
H.M. Electro Mech Limited, originally established in 2003 as M/s H.M. Engineers, is engaged in the field of turnkey projects involving supply, installation, testing and commissioning of pumping machineries for water and wastewater infrastructure. The company has diversified into electrification projects with Indian railways, nationalized banks, and municipal corporations. Recently, it expanded into full EPC projects including laying cross-country pipelines, civil works for water supply projects, construction of water treatment plants, diesel generating sets, panel rooms, and instrumentation with PLC-SCADA systems. The company also sells products including pumps, pipes, transformers, motors, and electronic accessories. It is ISO 9001:2015 certified and holds Class 'AA' classification with the Irrigation division of Government of Gujarat. Since 2018, it has completed 16 projects aggregating ₹13,209.82 lakhs and is currently engaged in 37 ongoing projects aggregating ₹41,034.41 lakhs with revenue recognized till September 30, 2024 of ₹22,732.05 lakhs.
Company Analysis
from RHPH.M. Electro Mech Limited provides turnkey engineering, procurement, and construction (EPC) projects for water supply infrastructure and electrification, along with operations and maintenance services.
H.M. Electro Mech Limited, originally established in 2003 as M/s H.M. Engineers, is engaged in the field of turnkey projects involving supply, installation, testing and commissioning of pumping machineries for water and wastewater infrastructure. The company has diversified into electrification projects with Indian railways, nationalized banks, and municipal corporations. Recently, it expanded into full EPC projects including laying cross-country pipelines, civil works for water supply projects, construction of water treatment plants, diesel generating sets, panel rooms, and instrumentation with PLC-SCADA systems. The company also sells products including pumps, pipes, transformers, motors, and electronic accessories. It is ISO 9001:2015 certified and holds Class 'AA' classification with the Irrigation division of Government of Gujarat. Since 2018, it has completed 16 projects aggregating ₹13,209.82 lakhs and is currently engaged in 37 ongoing projects aggregating ₹41,034.41 lakhs with revenue recognized till September 30, 2024 of ₹22,732.05 lakhs.
Objects of the Issue
- To Meet Working Capital Requirements ₹2,100.00 Lakhs p.21
- General Corporate Purposes p.21
- To Meet Working Capital Requirements ₹2,100.00 Lakhs p.81
- General Corporate Purposes p.81
Issue Structure
- Total Issue
- 36,99,200 Equity Shares aggregating to ₹[●] Lakhs
- Fresh Issue
- 36,99,200 Equity Shares aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- [●] (Floor Price) to [●] (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10/- per equity share
Business Model
The company operates on a project-based business model, primarily delivering EPC (Engineering, Procurement and Construction) contracts through competitive bidding. Revenue is generated from turnkey supply, installation, testing and commissioning of pumping machineries and allied infrastructure; ongoing operations and maintenance services; electrification projects; and sale of products such as pumps, pipes, transformers, and motors.
Business Segments
SWOT Analysis
- • ISO 9001:2015 certified with Class 'AA' rating from Gujarat government(p.20)
- • Strong track record of project completion with reputation for timely execution(p.20)
- • Revenue growth from ₹6,184.32 lakhs (FY2022) to ₹11,703.45 lakhs (FY2024)(p.35)
- • Diversified service offerings across water supply, electrification and EPC projects(p.20)
- • Locational advantage with 84% of FY2024 revenue from Gujarat(p.20)
- • ISO 9001:2015 certified with highest category approval(p.80)
- • Diversified revenue streams across infrastructure, railways, and municipal sectors(p.80)
- • Experienced promoter management team with long operational history(p.49)
- • Improved profitability margins with strong gross profit performance(p.92)
- • Strong EBITDA growth trajectory(p.92)
- • Experienced promoters with 20+ years in electro-mechanical projects(p.114)
- • ISO 9001:2015 certified with highest EPC classification from Gujarat(p.114)
- • Approved electrical contractor enabling government contracts(p.114)
- • Robust order book of ₹41,034 crores as of Sept 2024(p.121)
- • Single-window comprehensive solutions from design to maintenance(p.120)
- • Strong partnerships with leading OEMs enabling competitive pricing(p.120)
- • Agile decision-making for swift project progression(p.121)
- • Consistently profitable with steady year-on-year growth(p.122)
- • Experienced management with 20+ years in electro-mechanical instrumentation(p.227)
- • ISO 9001:2015 certified with highest government contractor classification(p.227)
- • Stable promoter ownership since inception with no management changes(p.185)
- • Growing profitability with PAT increase from ₹258 lakhs (FY22) to ₹818.61 lakhs (FY24)(p.234)
- • Diversified business model across multiple services and geographies(p.227)
- • Strong order book of ₹41,034.41 lakhs with 37 ongoing projects(p.228)
- • Majority of revenue concentrated in two states (Gujarat 84.44%, Rajasthan 6.79% as of Sept 2024)(p.27)
- • Registered office premises occupied without formal ownership on no-rent basis(p.28)
- • Heavy dependence on limited number of customers; Top 3 customers account for 60.84% of Sept 2024 revenue(p.32)
- • High concentration with top 10 suppliers accounting for 86.13% of purchases as of Sept 2024(p.34)
- • Trademark application still pending and under objection; not yet registered(p.31)
- • Negative cash flows from operating activities in FY2023 (₹-414.21 lakhs) and negative financing cash flows Sept 2024(p.29)
- • Volatile and inconsistent operating cash flows(p.92)
- • Heavy dependence on working capital financing(p.81)
- • Significant outstanding debt levels requiring financing(p.83)
- • High leverage in capital structure with significant borrowing(p.48)
- • Limited scale compared to industry peers(p.94)
- • High dependence on single supplier (WILO) for pump products(p.123)
- • Capital-intensive EPC projects requiring upfront material payment(p.123)
- • High working capital requirements due to payment timing mismatch(p.123)
- • High revenue concentration in top customers(p.120)
- • Significant geographic concentration in Gujarat (84.44% of revenue)(p.114)
- • High dependence on limited number of customers (top 1 customer = 33.04% of revenue)(p.240)
- • Significant trade payables concentration (top 1 supplier = 43.15% of purchases)(p.241)
- • Rising debt burden with total borrowings of ₹733.44 lakhs(p.238)
- • High inventory levels relative to revenues (₹3,158.30 lakhs as of Sept 2024)(p.211)
- • Significant working capital requirements with inventory and receivables(p.237)
- • Large ongoing order book of ₹41,034.41 lakhs providing revenue pipeline(p.29)
- • Government infrastructure focus and E&C industry shift towards productized workflow(p.20)
- • Expansion into new states beyond Gujarat and Rajasthan to reduce concentration risk(p.28)
- • Growing demand for smart infrastructure and advanced engineering services(p.20)
- • Large infrastructure investment pipeline from government(p.111)
- • Increased allocation for railways and highways(p.110)
- • Growing water supply and infrastructure development projects(p.110)
- • Expansion in electrification and smart city projects(p.110)
- • Strong engineering services market growth globally and in India(p.101)
- • 100% FDI allowed in electrical machinery sector(p.111)
- • Government's Jal Jeevan Mission targeting 250 million rural tap connections by 2024(p.113)
- • Ken-Betwa Link Project expansion with ₹44,605 crore approved cost(p.112)
- • Smart Meter National Program replacing 25 crore conventional meters(p.113)
- • Railway electrification and infrastructure development initiatives(p.114)
- • Government's push for domestic defence manufacturing under DcPP programme(p.112)
- • Expanding presence beyond Gujarat into Rajasthan, Maharashtra, and other states(p.121)
- • Expansion into new geographic markets and states(p.228)
- • Growing infrastructure development and water management projects(p.227)
- • Government approval for electrical installation works across states(p.227)
- • Expansion of EPC projects and joint venture collaborations(p.227)
- • Economic slowdown in India could reduce infrastructure spending and project awards(p.42)
- • Intense competition in E&C industry from larger companies and local competitors(p.35)
- • Fluctuation in raw material costs and unavailability from spot market suppliers(p.31)
- • Political and regulatory changes in India affecting business operations and policies(p.42)
- • Natural disasters, pandemics and external events beyond company control(p.43)
- • Order book projects may not translate to actual revenue due to delays, cancellations or payment defaults(p.29)
- • Cyclicality and slowdown in global and emerging market economies(p.101)
- • Persistent inflation affecting costs and margins(p.101)
- • Intense competition in engineering and construction sectors(p.109)
- • Dependence on government tenders and policy continuity(p.103)
- • Declining demand and market barriers affecting exports(p.106)
- • Volatility in commodity prices (steel, copper, aluminium) dependent on international markets(p.123)
- • Exposure to regulatory and policy changes affecting infrastructure projects(p.123)
- • Increasing competition from new players in water and infrastructure sector(p.123)
- • Project execution risks and dependency on timely government disbursements(p.114)
- • Weather and environmental risks (monsoon, droughts) affecting water projects(p.112)
- • Dependence on government and public sector contracts subject to budget constraints(p.228)
- • Project execution delays and weather-dependent work cycles(p.240)
- • Competition from existing and potential competitors in electro-mechanical contracting(p.242)
- • Sensitivity to input costs including pumps, pipes, motors and electrical materials(p.232)
- • Regulatory and approval risks for electrical contractor licenses(p.250)
- • GST compliance and indirect tax proceedings (5 cases with ₹158.27 lakhs involved)(p.245)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dipak Padmakant Pandya | Promoter | 24.33% | 17.76% |
| Mahendra Ramabhai Patel | Promoter | 24.33% | 17.76% |
| Mita Dipak Pandya | Promoter | 24.16% | 17.63% |
| Varsha Mahendra Patel | Promoter | 24.16% | 17.63% |
| Harshal Mahendra Patel | Promoter | 0.10% | 0.07% |
| Mahendra Ramabhai Patel | Promoter | 24.33% | 17.76% |
| Dipak Padmakant Pandya | Promoter | 24.33% | 17.76% |
| Mita Dipak Pandya | Promoter | 24.16% | 17.63% |
| Varsha Mahendra Patel | Promoter | 24.16% | 17.63% |
| Harshal Mahendra Patel | Promoter | 0.10% | 0.07% |
| Suhani Swapnil Patel | Promoter Group | 0.20% | 0.15% |
| Pinal Mahendra Patel | Promoter Group | 0.10% | 0.07% |
| Twinkal Sagarkumar Paneliya | Promoter Group | 0.10% | 0.07% |
| Dipak Padmakant Pandya | Promoter | — | — |
| Mahendra Ramabhai Patel | Promoter | — | — |
| Mita Dipak Pandya | Promoter | — | — |
| Varsha Mahendra Patel | Promoter | — | — |
| Harshal Mahendra Patel | Promoter | — | — |
| Dipak Padmakant Pandya | Promoter | 25.00% | — |
| Mahendra Ramabhai Patel | Promoter | 25.00% | — |
| Varsha Mahendra Patel | Promoter | 24.75% | — |
| Mita Dipak Pandya | Promoter | 24.75% | — |
| Harshal Mahendra Patel | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.