The initial public offerings (IPOs) of GB Logistics Commerce and HM Electro-Mech, listed in the SME segment, received enthusiastic responses from investors, achieving full subscription on the first day of bidding, January 24.
GB Logistics Commerce IPO
GB Logistics Commerce launched its IPO to raise ₹25.07 crore by offering 24.57 lakh equity shares at the upper price band of ₹102 per share. The offering comprises only a fresh issue of shares.
On day one, the IPO received bids for 95.6 lakh shares against the offer size of 17.58 lakh shares through 4,324 applications, resulting in a subscription of 5.44 times, as per BSE data.
Qualified institutional buyers led the demand with a subscription rate of 7 times their reserved quota. Retail investors subscribed 6.14 times their portion, while non-institutional investors bid for 2.69 times their allocation.
The Maharashtra-based logistics firm raised ₹7.14 crore in a pre-IPO placement on January 23 by allotting 6.99 lakh shares to institutional investors via its anchor book. The IPO proceeds will be used for repaying debt, meeting working capital requirements, purchasing truck chassis and truck bodies, and other corporate purposes.
HM Electro Mech IPO
The maiden IPO of HM Electro Mech saw an even higher subscription rate of 7.32 times on January 24. Investors bid for 1.93 crore equity shares compared to the offer size of 26.46 lakh shares, with 11,141 applications submitted, as per BSE data.
Retail investors showed strong interest, oversubscribing to their reserved portion 13.84 times. Non-institutional investors subscribed 3.28 times their quota, while qualified institutional buyers did not participate.
HM Electro Mech aims to raise ₹27.74 crore by issuing 36.99 lakh shares at the upper price band of ₹75 per share. The company specializes in turnkey projects involving the supply, installation, testing, and commissioning of pumping machinery, along with operation and maintenance services. Recently, it has expanded into EPC (engineering, procurement, and construction) projects, including cross-country pipeline installation and water supply-related civil works.
The IPO funds will primarily support working capital requirements, with the remainder allocated for general corporate purposes.
IPO Closing and Lead Managers
Both IPOs are set to close on January 28. SKI Capital Services is managing the GB Logistics Commerce IPO, while Beeline Capital Advisors is the lead manager for the HM Electro Mech IPO.