“H. M. Electro Mech Limited” Filed DHRP with BSE SME

H. M. Electro Mech Limited (“The Company” or “HMEML”) has filed its Draft Red Herring Prospectus (“DRHP”) with BSE SME on June 28, 2024. The Company was originally established in Year of 2003 as a partnership firm named as ‘M/s H.M. Engineers” under the Partnership Act, 1932, later it converted from partnership firm to (Joint Stock Company under Part I company) a public limited company named as “H. M. Electro Mech Limited” 

 

Initially the core Business of the Company was Infra projects related to water supply scheme involving Pumping Machineries and allied accessories for water and waste water. Over the years it has diversified in the field of electrification projects with Indian railways, Nationalized Banks and Municipal Corporations. The Company plans to raise fund through Initial Public Offering of shares (aggregating up to Up to 37,00,000 Equity Shares (Face Value Rs.10 each)

 

OBJECTS OF THE ISSUE:

 

The Company proposes to utilise the Net Proceeds towards funding the following objects:

1. To Meet Working Capital Requirements
2. General Corporate Purposes

The Book Running Lead Manager to the Issue is Beeline Capital Advisors Private Limited and Registrar to the Issue is Cameo Corporate Services Limited.

 

ABOUT THE COMPANY: The company has recently started EPC (Engineering, Procurement and Construction) field projects which involves laying cross country pipe line and civil work related to water supply projects including construction of water treatment plant (WTP), Civil Work for Pump Houses, Diesel Generating Sets, Panel Room, Instrumentation, PLC-SCADA. For such EPC projects they are working in collaboration/joint ventures with other companies, also for carrying out the civil work part of the project. 

 

H. M. Electro Mech Limited is also engaged in sale of products which includes Pump, Pipes, Transformer, Motor and Other Electronic Accessories.  It is an ISO 9001:2015 certified company and an approved Electrical contractor in Class ‘A’ (highest category for Electrical Contracts – unlimited bidding capacity subject to fulfilment of other tender conditions) and Class ‘AA’ (highest category for EPC Contracts – unlimited bidding capacity subject to fulfilment of other tender conditions) with Irrigation division of Government of Gujarat. 

 

The Company is an approved electrical contractor with State Government of Rajasthan also under Indira Gandhi Nahar Pariyojana, Bikaner. They are authorized by Government of Gujarat Energy and Petrochemicals Department to carry out Electrical Installation Works in the Gujarat State. Since 2018 the company completed 12 projects having aggregating of ₹ 11,629.86 lakhs. Apart from this, currently they are engaged in 30 ongoing projects having aggregating of ₹ 38,541.23 lakhs.  

 

The key clients of the company include State Governments, Central Government, Municipal corporations, banking sector and educational institutes etc. They have a locational advantage in the state of Gujarat where its registered office is situated with nearly 80% of our total revenue. They have strategically expanded their presence and network to different parts of the country, taking on projects in various regions, including Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Punjab and Chandigarh etc. Promoters of Our Company are Dipak Padmakant Pandya, Mahendra Ramabhai Patel, Varsha Mahendra Patel and Mita Dipak Pandya.

 

FINANCIALS:

 

H.M. Electro Mech Limited has shown robust financial growth over recent years. Revenue surged from ₹4,696.89 lakhs in FY 2021 to ₹7,526.67 lakhs by December 2023. Profit margins have improved, with gross profit margins at 16.42% and EBITDA margins at 10.65%.