Om Power Transmission Lists At Small Premium Over IPO Price

Shares of Om Power Transmission Ltd. listed at a 6% premium on the stock market on Friday after its initial public offering. The share price opened at Rs 186 on the NSE and Rs 181.1 on the BSE, compared to the IPO price of Rs 175. The listing premium was higher than the grey market prediction which projected a flat debut.

Om Power Transmission IPO was a book build issue of Rs 150 crore with a fresh issue of Rs 132.56 crore and offer for sale of Rs 17.5 crore. The bidding was open between April 9 and 13. The public issue was subscribed 3.32 times last week. The bids were led by non-institutional investors (7.06 times), QIBs at 3.65 times and retail at 1.54 times.

The company plans to use the net proceeds from the issue for various purposes. These include funding capital expenditure needs through the purchase of machinery and equipment, partially or fully pre-paying certain outstanding borrowings and meeting long-term working capital requirements. A portion of the funds will also be allocated towards general corporate purposes.

Om Power Transmission, incorporated in June 2011, is a power transmission infrastructure engineering, procurement and construction (EPC) company. It specialises in executing high-voltage and extra-high voltage transmission line projects, substations and underground cabling works. These projects are delivered on a turnkey basis, covering design, engineering, supply, erection, installation, testing, commissioning and end-to-end operation and maintenance services.

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