The initial public offer (IPO) of Power Mech Projects received bids for a total of 11.39 crore shares, compared with up to 29.88 lakh equity shares on offer, as per data from the National Stock Exchange (NSE) website. The IPO was subscribed 38.12 times. The price band for the IPO was fixed at Rs 615 to Rs 640 per share. The IPO had opened for bidding on 7 August 2015 and closed yesterday, 11 August 2015.

Category-wise subscription data showed that the Qualified Institutional Buyers (QIBs) portion of the IPO was subscribed 27.53 times. Non institutional investors (NII) category was subscribed 133.22 times. The retail investors portion of the IPO was subscribed 3.42 times.

On 6 August 2015, Power Mech Projects raised Rs 81.96 crore by allotting 12.80 lakh shares to seven anchor investors at the top end of the price band. The anchor investors were DSP Blackrock India Mutual Fund (DSP MF), SBI Mutual Fund (SBI MF), L&T Mutual Fund (L&T MF), HDFC Mutual Fund (HDFC MF), IDFC Mutual Fund (IDFC MF), Morgan Stanley Mauritius Company and Tata AIA Life Insurance Co.

Among anchor investors, IDFC MF bought 4.06 lakh shares, DSP MF acquired 2.18 lakh shares, two funds under SBI MF bought a total of 2.18 lakh shares, two funds under HDFC MF acquired a total of 1.09 lakh shares, two funds under L&T MF bought a total of 78,140 shares, Morgan Stanley Mauritius Company acquired 1.40 lakh shares and Tata AIA Life Insurance Company acquired 1.09 lakh shares.

Anchor, or cornerstone investors, are institutional investors which are given allotment on a discretionary basis just before the opening of the IPO to instill confidence in the issue. Shares allotted to anchor investors have a lock-in for 90 days.

The issue comprised fresh offer of 21.28 lakh equity shares. In addition, there was an offer for sale of 21.41 lakh equity shares of Rs 10 each by the existing shareholders viz. India Business Excellence Fund I, India Business Excellence Fund and two individuals (P. Srinivasa Rao and D. Aakashnag). Post offer, the holdings of India Business Excellence Fund I and India Business Excellence Fund will come down to around 1.28% and 1.27%, respectively, while the two individual shareholders will not hold any share.

Power Mech Projects is an integrated power infrastructure services provider. The company intends to utilize the proceeds of the fresh issue of Rs 105 crore for working capital requirements and for general corporate purpose.

Power Mech Projects reported net profit of Rs 70.70 crore on net sales of Rs 1355.61 crore in the year ended March 2015.