Om Power Transmission IPO Update: Subscription Reaches 39% Amid Key Issue Details and GMP Trends

Om Power Transmission IPO Sees Strong Interest Despite Subdued Grey Market Premium

The initial public offering (IPO) of Om Power Transmission, a company specializing in engineering, procurement, and construction (EPC) services for power transmission infrastructure, has seen strong interest from investors despite a subdued grey market premium. The IPO subscription opened on Thursday, April 9, and will conclude on Monday, April 13.

Om Power Transmission has established a price band of ₹166 to ₹175 per equity share, with a face value of ₹10. The minimum lot size is 85 equity shares, and investors can purchase additional shares in increments of 85. The company has already raised ₹45.01 crore from three anchor investors ahead of its IPO.

The principal anchor investor was the Mauritius-based Craft Emerging Market Fund PCC, which, through its Elite Capital Fund and Citadel Capital Fund, purchased a total of 16.57 lakh shares for more than ₹29 crore. Morgan Stanley Asia (Singapore) bought 5.71 lakh shares in Om Power Transmission for ₹10 crore, while Sunrise Investment Trust, through the Sunrise Investment Opportunities Fund, acquired 3.43 lakh shares for ₹6.01 crore.

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Om Power Transmission has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and not less than 35% of the offer for retail investors. The basis of allotment of shares is expected to be finalized on Wednesday, April 15, with refunds initiated on Thursday, April 16, and shares credited to the demat account of allottees on the same day.

The estimated listing price of Om Power Transmission share price, based on the upper end of the IPO price band and the current premium in the grey market, is ₹178.5 apiece, which is 2% higher than the IPO price of ₹175. The grey market premium is currently at +3.5, indicating a robust listing ahead.

From an investment standpoint, the IPO of Om Power Transmission seems more suited for long-term investors who resonate with India's infrastructure expansion narrative, rather than those looking for quick listing gains. The company has shown robust earnings growth and operates within a sector supported by long-term government capital expenditure trends.

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Om Power Transmission IPO Subscription Status

The company has received bids for 23,70,055 shares against 60,02,730 shares on offer, at 17:00 IST, according to data on BSE. The funds generated from the IPO will primarily be used for purchasing machinery and equipment, reducing certain debts, and satisfying working capital requirements.