Power plant-erection and maintenance company Power Mech Projects Ltd has announced its plans to go public. The company, backed in portion by Motilal Oswal’s private equity arm, is offering 42.69 lakh shares of ₹10 each for its initial public offering, which will be open between August 7 and 11.
The issue, which will be through the book building process, is for ₹262-273 crore, at the lower and upper levels of the price band respectively.
The company has fixed the price band of ₹615-640 for each equity share.
Of the shares on offer, 21.28 lakh shares are fresh equity offering while 21.41 lakh shares are an offer for sale by selling shareholder Motilal Oswal Private Equity. The issue will constitute 29.02 per cent of the fully diluted post issue paid-up equity share capital of the company.
Hyderabad-based Power Mech Projects Ltd’s primary business is erection, testing and commissioning of boilers, turbines and generators at power plants as well as operations and maintenance (O&M) of power projects.
Of the O&M business, Power Mech says it controls 70 per cent of the market share and counts India’s biggest private sector power producers, including the large power projects by Tata Power and Adani Power, as among its clients.
₹4,000-cr order book It currently has an order book of around ₹4,000 crore and is present in almost every State. The company also plans to expand globally, particularly in West Asia and North Africa region.
The company proposes to use the IPO proceeds for funding working capital requirements of the company and general corporate purposes.
The minimum bid lot is 20 equity shares and in multiples of 20 thereafter. The equity shares will be listed on the NSE and the BSE.
The book running lead managers to the Issue are Kotak Mahindra Capital, IIFL Holdings Ltd and Motilal Oswal Investment Advisors. The registrar to the issue is Karvy Computershare.