Key Points:
- Om Power Transmission IPO saw 39% subscription on Day One, led by institutions.
- The ₹150.06 crore issue is priced at ₹166–₹175 per share.
- Funds will go toward expansion, debt repayment, and working capital.
Om Power Transmission’s ₹150.06 crore IPO was subscribed 39% on Day One, with strong institutional interest, as investors bid for 23.69 lakh shares of the 60.02 lakh shares offered.
Institutional Demand Drives Early Subscription
Om Power Transmission IPO opened to moderate demand on Thursday, with overall subscription reaching 39% by the end of Day One, according to data from the National Stock Exchange.
Qualified institutional buyers led the demand, subscribing to 78% of their allotted quota. Retail individual investors subscribed 29%, while non-institutional investors booked 11% of their portion.
Market analysts said institutional participation signals confidence in the company’s fundamentals. “The strong response from institutional investors indicates faith in the EPC segment, especially in power transmission infrastructure,” said a Mumbai-based market analyst.
The Day Two subscription figures are expected to be updated after 10 a.m. Friday.
IPO Structure, Pricing, and Allocation Details
The ₹150.06 crore IPO comprises a fresh issue of ₹132.56 crore and an offer-for-sale worth ₹17.50 crore by promoters, including Vasantkumar Narayanbhai Patel, Kanubhai Patel and Kalpesh Dhanjibhai Patel.
The company has set a price band of ₹166 to ₹175 per share. Investors can bid in a minimum lot size of 85 shares.
Half of the issue is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
The shares of Om Power Transmission IPO are scheduled to list on the National Stock Exchange and the BSE on April 17.
Beeline Capital Advisors is managing the issue, while MUFG Intime India is acting as the registrar.
Proceeds Target Expansion, Debt Repayment
The company plans to use the net proceeds primarily for capital expenditure, including the purchase of equipment and machinery. Funds will also be used to repay certain outstanding borrowings and meet long-term working capital requirements.
Om Power Transmission operates as an engineering, procurement and construction firm focused on power transmission infrastructure. It undertakes projects involving high-voltage and extra-high-voltage transmission lines, underground cabling and substations, along with maintenance services.
In the grey market, the company’s unlisted shares are trading at around ₹178.5, reflecting a premium of about 2% over the upper price band, according to market trackers. Analysts caution that grey market trends are unofficial and not regulated.
“Investors should rely on fundamentals rather than grey market signals when making decisions,” said a senior investment advisor.
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