This IPO shone brightly on listing day, beating GMP, with investors earning substantial profits on each share.

News Topical, Digital Desk : Shares of Om Power Transmission made a positive debut on the Indian stock market on Friday, April 17. The company's shares listed at ₹186 on the National Stock Exchange (NSE), a premium of 6.29% over its issue price of ₹175. Meanwhile, on the Bombay Stock Exchange (BSE), its shares rose 3.49% to close at ₹181.10.

Interestingly, the listing significantly exceeded the gray market premium (GMP) estimates. Before listing, Om Power Transmission's GMP was only ₹2, indicating a yield of just 1.14%. However, the shares surprised investors upon entering the market.

How was the response to the IPO?

This ₹150.06 crore (₹150.06 crore) mainboard IPO was open for bidding from April 9 to April 13. Allotment of shares was completed on April 16, and shares were credited to investors' demat accounts the same day.
The offering received a strong response from investors. By the closing day, Om Power Transmission's IPO was subscribed a total of 3.33 times.

Which segment got how much subscription

Non-Institutional Investors (NII): 7.06 times
Qualified Institutional Buyers (QIB): 3.65 times
Retail Investors (Retail): 1.54 times

Fund utilization and issue details

A total of 0.76 crore new shares (Fresh Issue) were issued in this offering, valued at ₹132.56 crore. Additionally, the promoters made an offer for sale (OFS) of 0.10 crore shares valued at ₹17.50 crore.
The company clarified that it will use the proceeds from the new shares primarily for capital expenditure (purchase of machinery and equipment). Additionally, it will be used to repay certain debts of the company, meet long-term working capital requirements, and for general corporate purposes.

Other important things related to IPO

Price Band and Lot Size

The company had fixed the price band at ₹166 to ₹175 per share. Investors were allowed to bid in lots of a minimum of 85 shares and in multiples thereof.
Lead Managers and Registrars: Beeline Capital Advisors acted as the book-running lead manager for the issue, while MUFG Intime India was the registrar.

What does Om Power Transmission do?

Om Power Transmission is primarily a power transmission infrastructure engineering, procurement, and construction (EPC) company. It builds high-voltage (HV) and extra-high voltage (EHV) transmission lines, substations, underground cabling projects, and provides comprehensive operations and maintenance (O&M) services.

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