Energy Mission Machineries IPO: Issue booked over 320x on day 3 led by NIIs, retail investors. Check GMP

Energy Mission Machineries IPO has opened for subscription on Thursday, May 9, and will close on Monday, May 13. The issue's price band has been fixed in the range of ₹131 to ₹138 per share. The IPO lot size for Energy Mission Machineries is 1,000 shares.

The firm provides metal fabrication solutions to the industrial sector by designing and manufacturing CNC, NC, and traditional metal forming equipment. Press brake, shearing, plate rolling, iron worker, hydraulic presses, and busbar bending, cutting, and punching machines are only a few of the company's many metal forming devices. 

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The company offers a range of products that enable producers to obtain the essential precision machinery needed for metal cutting and shaping processes. A vast range of sectors, including the automotive, steel, pre-engineered building, furniture, HVAC, agricultural, road construction, elevator, food processing, and metalworking workshops, use the company's machinery.

As per the Red Herring Prospectus (RHP), the company's listed peers are Macpower CNC Machines Ltd (with a P/E of 89.06), and Jyoti CNC Automation Ltd (with a P/E of 779.56).

Between March 31, 2022, and March 31, 2023, the company's profit after tax (PAT) climbed by 135%, while its revenue increased by 27.31%.

Energy Mission Machineries IPO Subscription Status

Energy Mission Machineries IPO Subscription Status is 320.67 times, on day 3.

The retail portion was subscribed 289.36 times, and NII portion was booked 605.19 times. Qualified Institutions Buyers was subscribed 161.92 times on day 3. 

The company has received bids for 63,58,98,000 shares against 19,83,000 shares on offer, according to data on chittorgarh.com.

Energy Mission Machineries IPO Subscription Status was 7.17 times on the first day, and the issue was booked 21.82 times. 

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Energy Mission Machineries IPO details 

Energy Mission Machineries IPO, worth ₹41.15 crore, consists of a fresh issue of 29,82,000 equity shares with a face value of ₹10. There is no offer-for-sale component.

The objectives that follow will be achieved by the firm using the net issuance proceeds:

financing of capital expenditures for civil building projects at the Sanand, Gujarat, district of Ahmedabad, manufacturing facility currently in operation financing of capital costs for the installation of new machinery and plants; In order to fulfill the needs for operating capital; corporate goals in general.

The Energy Mission Machineries IPO's registrar is Bigshare Services Pvt Ltd, and the book running lead manager is Hem Securities Limited. Energy Mission Machineries IPO is being market-makered by Hem Finlease.

Energy Mission Machineries IPO GMP today

Energy Mission Machineries IPO GMP is +140. This indicates Energy Mission Machineries share price were trading at a premium of ₹140 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, Energy Mission Machineries IPO expected listing price was indicated at ₹278 apiece, which is 101.45% higher than the IPO price of ₹138.

Today's IPO GMP indicates higher and anticipates a solid listing based on the activity of the grey market over the past nine sessions. According to investorgain.com, the lowest GMP is ₹0 and the maximum GMP is ₹110.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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Energy Mission Machineries IPO Review

The firm designs and manufactures CNC, NC, and traditional metal forming equipment, according to Dilip Davda, contributing editor at Chittorgarh. There are a lot of participants in this market, and their financial results vary. This business saw consistent growth in its top lines, but increased profitability starting in FY22 raised questions about how sustainable it would be. The issue looks to be fully priced based on FY24 annualized super profits. Modest amounts of money can be parked for medium- to long-term returns by well-informed and cash-rich investors.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.