DMR Hydro IPO : Subscribe or NOT?

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

DMR Hydro SME IPO Business — DMR is engaged in providing engineering consultancy and due diligence services to hydropower, dams, roads, and railway tunnels. The services offered by the company include the entire life cycle of projects covering design & engineering, due diligence & regulatory, bid management & construction engineering, and quality & inspection

Key areas of Operation -Company has been working into renewables, water resources, mining, and urban infrastructure domains. The company has a presence across 11 states in India. Internationally the company provides services to over 5 countries including Nepal, Nigeria, Dubai, Germany, and Senegal.

Offer purpose — The issue consists of a fresh equity issue of 798000 shares and offer for sale of 198000 shares. Offer is to Fund working capital requirements and General corporate purposes

Risks —

SME company so liquidity risk is a major risk

The company is operating in a highly competitive and fragmented segment. There are many big players as well

Strength

Presence in both domestic and international markets
A wide offering of engineering consultancy and due diligence services
Experienced management and dedicated employee base
Catering to diversified sectors
Accredited with various quality certificates

Future

Company is working on areas for consultancy which are kind of good for future. Sustainability of margins could be thing to look for

Valuations

Valuations are reasonable looking at future. In short term, Price looks at par

Should we apply?

For medium to long term, prospects looks ok

People having risk apetite and long term vision can apply if they can held this stock patiently as liquidity can be low after listing

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