Om Power Transmission IPO Closes Today: Expert Insights, GMP, and Subscription Guidance

Om Power Transmission's IPO Closes for Subscription on April 13

The initial public offering (IPO) of Om Power Transmission closed for subscription on April 13, with the issue seeing a significant pickup in demand from the opening day. On Friday, the second day of the issue, the IPO was subscribed 71 percent overall, indicating a steady increase in demand from the opening day on April 9.

According to data from the Bombay Stock Exchange (BSE), the Qualified Institutional Buyers (QIBs) portion was subscribed 1.18 times, while Non-Institutional Investors (NIIs) booked 0.38 times. Retail Individual Investors (RIIs) showed better momentum at 0.58 times.

The IPO had garnered 39 percent subscription on Day 1, led largely by QIB demand. Prior to the issue opening, the company raised Rs 45.01 crore from anchor investors. Mauritius-based Craft Emerging Market Fund PCC, through its Elite Capital Fund and Citadel Capital Fund, 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.

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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. 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 percent of the issue for QIBs, at least 15 percent for NIIs, and a minimum of 35 percent for retail investors. In the grey market, the GMP stood at Rs 2, as per latest investorgain.com data. Based on the upper price band of Rs 175, the estimated listing price is around Rs 177, indicating a potential gain of about 1.14 percent per share.

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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SBI Securities has given a thumbs up to this public issue, citing the company's proven capabilities in executing HV and EHV transmission lines, substations, and underground cabling projects on a turnkey basis. The company has demonstrated healthy financial performance, with Revenue/EBITDA/PAT growing at a CAGR of 52%/73%/88% to Rs 279 crore/Rs 34 crore /Rs 23 crore respectively between FY23-25.

Additionally, the company is well placed to capitalize on strong sector tailwinds, with India's power generation and transmission market expected to expand from USD 125 bn in FY24 to USD 280 billion by FY30P, growing at a CAGR of 14.4%. SBI Securities recommends investors to subscribe to the issue at the cut-off price for a long-term investment horizon.