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Energy Mission Machineries initial public offering (IPO) worth Rs 41.15 crores opens for subscription today. The IPO is an entire fresh issue of 29.82 lakh shares. The subscription period runs fromThursday, May 9 to Monday, May 13, 2024, with allotment expected on May 14, 2024.
The price band for the IPO issue is set at Rs 131 to Rs 138 per share, with a minimum lot size of 1,000 shares. Retail investors need a minimum investment of Rs 1,38,000, while HNIs require 2 lots (2,000 shares), amounting to Rs 2,76,000.
The Energy Mission Machineries SME IPO latest GMP (grey market premium) stands at Rs 110. At the price band of Rs 138.00, the estimated listing price for the IPO is Rs 248, suggesting an expected listing gain of 79.71 per cent per share.
The company plans to allocate the proceeds from the net issue to various purposes such as fund capital expenditure for civil construction work at its existing manufacturing unit in Sanand, District Ahmedabad, Gujarat. Funds will also be allocated for the installation of new plants and machinery. Additionally, a portion will be set aside to meet working capital requirements.
The company’s revenues grew 25.5 per cent in the fiscal year 2022-23 (FY23) to Rs 100 crore as against Rs 79 crore in FY22. While at the same time, the net profit grew by 135 per cent per cent to Rs 79 crore in FY23 versus Rs 33 crore in FY22.
As of December 31, 2023, the firm has a profit after tax (PAT) margin of 8.1 per cent while it has a debt to equity ratio of 0.77.
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The book running lead manager for the issue is Hem Securities Limited, and Bigshare Services Pvt Ltd is the registrar. The IPO will list on NSE SME on May 16, 2024.
Energy-Mission Machineries (India) Limited, established in 2011, specialises in manufacturing metal forming machines for various industrial sectors such as automotive, steel, furniture, HVAC, agriculture, construction, elevators, and food processing.
Their product range includes press brakes, shearing machines, plate rolling equipment, ironworkers, hydraulic presses, and busbar bending, cutting, and punching machines.
With a global presence, the company exports its products to countries like the USA, Switzerland, Russia, Nepal, Kenya, Uganda, UAE, and Saudi Arabia.
Between April 2023 and August 2023, they supplied over 1,050 customers worldwide with over 1,487 metal forming machines, showcasing over 600 variations, spanning the last three fiscal years and five months.
