OBSC Perfection IPO Oversubscribed More Than 16 Times; Check Latest GMP

The initial public offering of OBSC Perfection Ltd., a precision metal components manufacturer, opened for subscription on Tuesday and was subscribed 16.56 times on its final day on October 24. The SME issue was subscribed 2.53 times on Day 2. On day one of bidding, the SME IPO was subscribed 0.77 times.

The book-built issue comprises an entirely fresh offer of 66.02 lakh shares, amounting to Rs 66.02 crore.

OBSC Perfection IPO has been subscribed 16.56 times as of 6:19 p.m. on Thursday.

• Qualified Institutions: 10.20 times

• Non-Institutional Buyers: 25.87 times

• Retail Investors: 16.20 times

The grey market premium for the OBSC Perfection SME IPO stood at Rs 11, as of 7:02 p.m. on Oct. 24 implying a gain of 11% over the IPO price. As per InvestorGain, shares of OBSC Perfection Ltd. are likely to list at Rs 111.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

OBSC Perfection IPO's price band has been set in the range of Rs 95 to Rs 100 per share. Retail investors are required to apply for a minimum of 1,200 shares in the offering, which translates to an investment of Rs 1,20,000.

The company will finalise the share allotment status in the IPO on Oct. 25. This will be followed by the initiation of refunds for unsuccessful bidders on Oct. 28 along with credit of shares into the demat account of successful bidders on the same day.

The listing of OBSC Perfection shares on the NSE SME is expected to take place on Oct. 29.

Unistone Capital Pvt. is serving as the lead manager for this IPO, while Bigshare Services Pvt. will be the registrar. RK Stock Holding is designated as the market maker for the OBSC Perfection IPO.

OBSC Perfection Ltd., founded in 2017, manufactures precision metal components for various industries. The company offers a range of high-quality products, including cut blanks, shafts, torsion bars, piston rods and more.

OBSC Perfection primarily serves original equipment manufacturers that supply parts to major automobile companies in India, as well as manufacturers in the defence, marine and telecom sectors. The company operates four manufacturing facilities—three in Pune, Maharashtra (including the main facility) and one in Chennai, Tamil Nadu.

OBSC Perfection Ltd. aims to use the proceeds from the IPO to fund capital expenditure on the acquisition of new machinery for its manufacturing facility in Sriperumbudhur, Tamil Nadu. The company will also allocate funds for capital expenditure at its Unit IV, in Pune.

A part of the proceeds will also support the company’s working capital requirements and cover general corporate purposes.

OBSC Perfection Ltd. saw significant growth in its financial performance, with total revenue rising by 19.81% year-on-year, increasing from Rs 96.91 crore in fiscal 2023 to Rs 116.11 crore for the year ending March 31, 2024.

The company's profit after tax also saw remarkable growth, surging by 167% from Rs 4.57 crore in fiscal 2023 to Rs 12.21 crore in fiscal 2024.

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