Om Power IPO Sees Improved Retail Demand on Second Day, Subscription Rate Reaches 54%

Om Power Transmission IPO Sees Steady Pickup in Demand

Om Power Transmission's initial public offering (IPO) has seen a significant increase in demand, with 54% subscription by the end of Day 2 of bidding on Friday, April 10. This marks a steady pickup in demand from the opening day.

The IPO, which opened on April 9 and will close on April 13, has seen improved traction from retail investors. According to the latest data from the Bombay Stock Exchange (BSE), the Qualified Institutional Buyers (QIBs) portion was subscribed 78%, while Non-Institutional Investors (NIIs) were booked 23%. Retail Individual Investors (RIIs) showed better momentum at 53% subscription.

On Day 1, the IPO was subscribed 39% overall, led by QIB demand. This highlights the strong interest from institutional investors in the company's IPO. Ahead of the issue opening, Om Power Transmission had raised Rs 45.01 crore from anchor investors.

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The anchor investors included Mauritius-based Craft Emerging Market Fund PCC, which picked up 16.57 lakh shares worth over Rs 29 crore. Morgan Stanley Asia (Singapore) acquired 5.71 lakh shares for Rs 10 crore, while Sunrise Investment Trust bought 3.43 lakh shares valued at Rs 6.01 crore.

Om Power Transmission operates in the engineering, procurement and construction (EPC) segment, focusing on power transmission infrastructure, and has over 14 years of experience in the sector. According to its 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).

The IPO allocation structure earmarks up to 50% of the issue for QIBs, at least 15% for NIIs, and a minimum of 35% for retail investors. In the grey market, the GMP stood at Rs 3.25, indicating a potential gain of about 1.86% per share based on the upper price band of Rs 175.

The estimated listing price is around Rs 178.25. The basis of allotment is likely to be finalised on April 15. Refunds are expected to be initiated on April 16, with shares credited to demat accounts on the same day. The stock is tentatively scheduled to list on the BSE and NSE on April 17.

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