Om Power Transmission IPO GMP Slips On Day 2 of Subscription - What It Signals For Investors

The initial public offering of Om Power Transmission which opened for bidding on Thursday was subscribed 0.4 times on the first day. The Ahmedabad-based power transmission infrastructure company is looking to raise over Rs 150 crore from the primary market.

As bidding for the mainboard offers enters its second day, investors are keeping close watch on the GMP for the mainboard offer which has declined by 50% on Friday. The grey market premium (GMP) for the Om Power Transmission IPO indicated an expected gain of around 2%. According to InvestorGain, the GMP for the Om Power Transmission IPO stood at Rs 3.5 on April 10. It indicates a listing price of Rs 178.5 apiece.

Note: GMP does not represent official data and is based on speculation.

The IPO was booked 0.44 times as of 10:15 am on Friday, with investors bidding for 26,18,765 shares against the 60,02,730 shares on offer.

Here's all you need to know about the Om Power Transmission IPO.

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Om Power Transmission IPO: Key Details

The Om Power Transmission IPO is a book-built issue of Rs 150.06 crore. It comprises a fresh issue of 76 lakh shares worth Rs 132.56 crore and an offer-for-sale (OFS) of 10 lakh shares amounting to Rs 17.50 crore.

The price band for the IPO is set at Rs 166 to Rs 175 per share.

To participate in the IPO, retail investors must bid for a single lot of 85 shares, which requires an investment of Rs 14,875. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,08,250. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 68 lots. It will lead to an investment of Rs 10,11,500.

The subscription window for the IPO will close on April 13. The share allotment status is expected to be finalised on April 15. The company will transfer shares to the demat accounts of successful bidders on April 16, and refunds for non-allottees will be done on the same day.

Shares of Om Power Transmission are scheduled to list on the BSE and NSE on April 17.

Beeline Capital Advisors Ltd. is the book-running lead manager, and MUFG Intime India Ltd. is the registrar of the issue.

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Use Of Proceeds

The company will use proceeds from the IPO to fund capex, repay debt, meet long-term working capital requirements, and fund general corporate purposes.

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About Om Power Transmission

Om Power Transmission, an Ahmedabad-based infrastructure company, delivers engineering, procurement, and construction (EPC) services focused on power transmission. It has carved out expertise in turnkey execution of extra-high-voltage and high-voltage transmission lines, substations, and underground cabling projects.

Financials

The company reported a 198% year-on-year (YoY) jump in profit after tax (PAT) to Rs 22.08 crore in FY25 from Rs 7.41 crore in FY24. Revenue from operations rose 53% YoY to Rs 279.43 crore in FY25 from Rs 182.76 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.