Om Power IPO: 5 things to know about Rs 150-crore issue - Is it a subscribe as GMP gains 4%?

Om Power Transmission’s public offering worth Rs 150 crore opens for bidding today. The IPO is a book-built issue, comprising fresh equity of over Rs 132 crore, while the remaining Rs 17 crore will be offloaded by the promoter group through the offer-for-sale route.

The company has fixed the share price band at Rs 166 to Rs 175 per share, and a lot comprises 85 shares.

Currently, the shares of Om Power are trading in the unlisted markets at Rs 182, implying a grey market premium of 4% on the upper end. The issue will close for bidding on April 13.

Here are 5 key details you should know before you bid for the Om Power IPO:

1. Om Power IPO: Issue Size and BRLMs

The company aims to raise Rs 150.06 crore via its offering. Of the total float, it will raise fresh equity worth Rs 132.56 crore via the issuance of nearly 76 lakh equity shares of Rs 10 each, while the OFS portion comprises 10 lakh equity shares valued at Rs 17.5 crore.

The offer is being managed by Beeline Capital Advisors Private, and MUFG Intime India is the registrar to the issue.

2. Om Power IPO: Key Dates

The issue opened for public bidding today, i.e., Thursday, April 9, and will close on Monday, April 13. It will remain open for a total of three days, while no bidding will take place over the weekend as stock exchanges are closed.

The share allotment process is expected to be completed by Wednesday, April 15, and investors are expected to receive the shares in their demat accounts by April 16. The refund process is likely to be completed by the latter date as well. Om Power will likely list on the stock exchanges on Monday, April 20.

3. Om Power IPO: GMP and Subscription Status

According to market trackers, in the unlisted markets, the company’s shares are trading at a premium of 4%, implying an estimated listing price of Rs 182 at the upper end of the share price band.

However, it is important to note that GMP is an unofficial metric to determine the listing price and fluctuates based on market mood and sentiment.

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Pre-IPO, the power transmission infrastructure EPC company raised Rs 45.01 crore via the anchor bidding process on April 8.

The IPO subscription details will be available on the NSE website post 10:00 AM (IST).

4. Om Power IPO: Utilization of Proceeds

Of the total fresh equity worth Rs 132 crore, the company will deploy Rs 55 crore to fund its long-term working capital requirements. It will utilise proceeds worth Rs 25 crore for the repayment of its borrowings, and nearly Rs 11 crore will be deployed to fund its capital expenditure requirements towards the purchase of machinery and equipment.

The remaining proceeds will be utilized for general corporate purposes.

5. Om Power IPO: Expert Take

SBI Securities, in its IPO note, recommends ‘Subscribe’ to the issue at the cut-off price for a long-term investment horizon.

“Further, 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 bn by FY30P, growing at a CAGR of 14.4%,” the brokerage said.

It added that the company’s plan to partially repay its borrowings to the tune of Rs 25 crore will aid in savings on finance costs and boost profitability. “At the upper price band of Rs 175, the issue is valued at a P/E of 27.1x/19.2x based on FY25 and annualised 9MFY26 earnings, respectively, on a post-issue basis,” SBI Securities said.