Om Power Transmission, a key player in engineering, procurement, and construction (EPC) services for power transmission infrastructure, has launched its initial public offering (IPO). Subscription for the IPO began on April 9 and will conclude on April 13, with the price band set between ₹166 and ₹175 per equity share.
The company has already secured ₹45.01 crore from three anchor investors, indicating strong initial interest. As of Day 2, the IPO was subscribed 71% overall, with the Qualified Institutional Buyers (QIB) portion subscribed 1.18 times, while the Non-Institutional Investors (NII) and retail portions were subscribed 0.38 times and 0.58 times, respectively.
Investors are keenly watching the grey market premium (GMP), which currently stands at +₹2. This suggests a positive sentiment towards the IPO, with an estimated listing price of ₹177 per share. The minimum lot size for the IPO is set at 85 shares, making it accessible for a range of investors.
SBICAP Securities has highlighted that at the upper price band of ₹175, the issue is valued at a price-to-earnings (P/E) ratio of 27.1x based on FY25 earnings. They noted that Om Power Transmission has demonstrated impressive financial performance, with revenue, EBITDA, and PAT growing at a compound annual growth rate (CAGR) of 52%, 73%, and 88%, respectively, between FY23-25.
Exencial Research Partners described Om Power Transmission as a compelling investment opportunity, citing a robust order book exceeding ₹744 crore and strong return metrics. They recommend subscribing for a favorable long-term outlook.
The basis of allotment will be finalized on April 15, with refunds initiated on April 16. Shares are expected to be credited to demat accounts on April 16, and the listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is anticipated on April 17.
As the IPO progresses, market observers are optimistic about the potential for Om Power Transmission to leverage its strong financials and market position. The proceeds from the IPO will be utilized for acquiring machinery, paying down debts, and fulfilling working capital needs, further strengthening the company’s operational capabilities.
