Pixelated acronym IPO made from cubes, mosaic patternAI Quick ReadOm Power Transmission IPO: The ₹150 crore initial public offering (IPO) of Om Power Transmission is all set to open for subscription on Thursday, April 9. The mainboard IPO will close for bidding on Monday, April 13.
Om Power Transmission IPO price band has been fixed at ₹166 to ₹175 per share. Investors can apply for the offer in lots of 85 shares.
In Om Power Transmission’s IPO, up to 50% of the offer has been reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and a minimum of 35% for retail participants.
Om Power Transmission operates as an engineering, procurement, and construction (EPC) company focused on power transmission infrastructure, bringing more than 14 years of experience in the sector.
The company specialises in delivering high-voltage (HV) and extra-high voltage (EHV) transmission lines, substations, and underground cabling projects on a turnkey basis. Its end-to-end services cover design, engineering, procurement, construction, installation, testing, commissioning, as well as comprehensive operation and maintenance (O&M).
Ahead of the issue, the shares of Om Power Transmission IPO are trading at a premium of ₹1.5 in the grey market, as per websites tracking the unofficial market.
The GMP of Om Power Transmission IPO is +1.5. This means that the estimated listing price is likely to be ₹176.5, which is 0.86% higher than the IPO price of ₹175.
Om Power Transmission IPO is a book-built issue worth ₹150.06 crore. It comprises a fresh issue of 0.76 crore shares totalling ₹132.56 crore, along with an offer for sale of 0.10 crore shares amounting to ₹17.50 crore.
The fresh proceeds will mainly be used to purchase machinery and equipment, repay certain borrowings, and support working capital requirements.
Kalpesh Dhanjibhai Patel, Kanubhai Patel and Vasantkumar Narayanbhai Patel are the promoters selling shareholders in the IPO.
The company said that a majority of its projects have been awarded through competitive bidding process. Failure to qualify for, compete or win new contracts could negatively impact our business, potentially affecting our financial condition, operational results, growth prospects, and cash flow stability.
It further added that its project portfolio and revenue generation has historically been concentrated in the state of Gujarat. This regional concentration could expose the company to economic, cultural, geopolitical and local market risks.
According to the company’s red herring prospectus (RHP), its listed peers include Rajesh Power Services Ltd (P/E of 16.38), Advait Energy Transitions Ltd (P/E of 57.52), and Viviana Power Tech Ltd (P/E of 25.15).
Beeline Capital Advisors is the book-running lead manager, and MUFG Intime is the registrar of the issue.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.