Power Mech IPO subscribed 45% on day 2

Hyderabad-based power infrastructure service provider Power Mech Projects Ltd's public issue neared the half-way mark led by applications from retail investors who lapped on to the IPO.

The IPO was covered 45 per cent at the end of day 2 after a slow opening last week. The issue closes on August 11.

Retail investors’ portion was subscribed 77 per cent while qualified institutional buyers' (QIBs) bid for around 12 per cent of the portion reserved for them. High net-worth individual investors & non-institutional investors bid for around 16 per cent of their portion of the issue as on day 2.

The overall public issue comprises 4.27 million shares, including an offer for sale by Motilal Oswal Private Equity (PE) of around 2.14 million shares. Of the total issue size, half will go to provide a partial exit to the PE investor.

Power Mech is into power infrastructure services and provides erection, testing and commissioning of boilers, turbines and generators and balance of plant works, civil works and operation and maintenance services.

It had raised Rs 82 crore (approximately $13 million) from a bunch of domestic and foreign investors that came as anchor investors ahead of its proposed initial public offer which opened for subscription on August 7.

The firm opened its IPO with a price band of Rs 615-640 a share, which would allow it to raise around Rs 191 crore (excluding anchor allotment).

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