The Energy Mission Machineries initial public offering (IPO) valued at Rs 41.15 crores will be open for subscription today. This IPO entails an entire fresh issue of 29.82 lakh shares. Investors have the opportunity to subscribe during the period from Thursday, May 9 to Monday, May 13, 2024, with allotment anticipated on May 14, 2024.
Priced between Rs 131 to Rs 138 per share, the IPO presents an enticing investment opportunity, with a minimum lot size of 1,000 shares. Retail investors are required a minimum investment of Rs 1,38,000, while High Net Worth Individuals (HNIs) need to acquire 2 lots (2,000 shares), amounting to Rs 2,76,000.
The grey market premium (GMP) for Energy Mission Machineries SME IPO is at an impressive Rs 110. At the upper price band of Rs 138.00, the estimated listing price for the IPO is projected at Rs 248, suggesting an expected listing gain of 79.71 per cent per share.
Energy Mission Machineries intends to utilize the proceeds from the net issue for various purposes, including capital expenditure for civil construction work at its existing manufacturing unit in Sanand, District Ahmedabad, Gujarat. Additionally, funds will be allocated for the installation of new plants and machinery, as well as to meet working capital requirements.
The company’s financial performance reflects its robust growth trajectory, with revenues surging by 25.5 per cent in the fiscal year 2022-23 (FY23) to Rs 100 crore from Rs 79 crore in FY22. Moreover, the net profit witnessed an impressive growth of 135 per cent to Rs 79 crore in FY23 compared to Rs 33 crore in FY22.
With a profit after tax (PAT) margin of 8.1 per cent as of December 31, 2023, and a debt to equity ratio of 0.77, Energy Mission Machineries exhibits strong financial fundamentals, bolstering investor confidence. The book running lead manager for the issue is Hem Securities Limited, with Bigshare Services Pvt Ltd serving as the registrar. The IPO is slated to list on NSE SME on May 16, 2024.
Established in 2011, Energy-Mission Machineries (India) Limited specializes in manufacturing metal forming machines catering to various industrial sectors such as automotive, steel, furniture, HVAC, agriculture, construction, elevators, and food processing. Their diverse product range includes press brakes, shearing machines, plate rolling equipment, ironworkers, hydraulic presses, and busbar bending, cutting, and punching machines.