Hyderabad-based power infrastructure service provider Power Mech Projects Ltd made a weak debut, listing at Rs 600 each, a 6.25 per cent discount to the IPO price of Rs 640 on the BSE on Wednesday.
Shares of the infrastructure provider touched a high of Rs 663.10 and low of Rs 585.20 intra-day in a volatile Mumbai market. At 1.13 PM, shares of the company were trading at Rs 595 each.
Power Mech is into power infrastructure services and provides erection, testing and commissioning of boilers, turbines and generators and balance of plant and civil works as well as operation and maintenance services.
The public issue of Power Mech to raise up to Rs 273.2 crore received robust response from the investors and was oversubscribed 37 times.
The overall public issue comprised 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 went to provide a partial exit to the PE investor.
Founded in 2009, the Hyderabad-based company will use the proceeds from the fresh issue to fund its working capital requirements, general corporate purposes, renovation and modernisation, scheduled shut-downs, retro fits as well as overhauling, maintenance and upgrade services for power plants.