Om Power Transmission opened the first day of trade at a premium of 6.3% to the issue price, listing at Rs 186 on the National Stock Exchange. The shares are listed at Rs 181.10 on the BSE, which is a premium of 3.49%. The company set the final issue price at Rs 175 per equity share.
The company raised Rs 150.06 crore through a combination of 0.76 crore fresh shares aggregating to Rs 132.56 crores, and an offer for sale of 0.10 crore shares amounting to Rs 17.50 crores. The IPO bidding was opened on April 9 and ended on April 13. The allotment was finalised on April 15.
Om Power Transmission IPO: GMP
The company’s shares were fetching a grey market premium (GMP) of 1% to their issue price a day ahead of the listing, changing hands at a price of Rs 177. This translated into a gain of Rs 170 on a single lot.
Investors need to note that GMP is not an official gauge to measure an IPO. As noted in this case, the actual listing price is significantly higher than the GMP indication.
Om Power Transmission IPO: Subscription snapshot
The Om Power Transmission IPO saw a muted response from investors. By the end of the bidding window, the overall subscription stood at 3.33 times.
Qualified Institutional Buyers (QIBs): 3.65 times
Non-Institutional Investors (NIIs): 7.06 times
Retail Investors: 1.54 times
Om Power Transmission IPO: Book runner and registrar
Beeline Capital Advisors was the book-running lead manager of the IPO, and MUFG Intime India was working as the registrar of the issue.
Om Power Transmission IPO: Objectives of raising funds
The company raised the money to fund the capital expenditure of Rs 11.21 crore for purchasing machinery and equipment. It will be using Rs 25 crore for the payment of borrowings. The company will be using Rs 55 crore for funding the long-term working capital requirement. Apart from these, Rs 28.11 crore is for General Corporate Purposes.
About Om Power Transmission
Om Power Transmission is a power transmission infrastructure engineering, procurement, and construction (EPC) company with over 14 years of experience.
Incorporated in June 2011, the firm specialises in the implementation of high-voltage and extra-high voltage transmission lines, substations, and underground cabling projects delivered as a turnkey solution. This includes design, engineering, supply, erection, installation, testing, commissioning, and extensive operation and maintenance (“O&M”) services.