Power Mech's Rs 273 crore IPO to open on Friday

Power Mech Projects will hit the capital markets tomorrow to raise up to Rs 273 crore through an initial public offer (IPO).

The bidding for 42.69 lakh equity shares in the IPO will open tomorrow and close on August 11, making Power Mech, the tenth company to hit the capital markets this year.

The company has fixed a price band of Rs 615 to Rs 640 per equity share. Based on the price band, the firm could garner between Rs 162.5 crore and Rs 273.2 crore through its initial share sale programme.

The proceed of the issue would be utilised towards expanding the company's presence globally and to meet working capital requirements.

Kotak Mahindra Capital, IIFL Holdings and Motilal Oswal Investment Advisors will manage the company's IPO.

Power Mech is engaged in three business verticals, including erection, testing and commissioning of boilers, turbines and generators and balance of plant (BOP) for power sector, operation and maintenance and civil works which include construction jobs for the main plant and BOP requirements.

So far in 2015, nine firms have mobilised nearly Rs 4,400 crore through their IPOs, higher than funds raised in the preceding two years.

In addition, 24 companies have filed draft papers with Sebi, while some others, including GVK Airport are in the process to file their initial papers.

A total of six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,261 crore, while in 2013, three companies raked in Rs 1,284 crore through initial share plans.