Om Power Transmission Lists at Six Per Cent Premium
POWER & RENEWABLE ENERGY

Om Power Transmission Lists at Six Per Cent Premium

Shares of Om Power Transmission made a positive debut on the National Stock Exchange, listing at Rs 186 per share on Friday and reflecting a premium of Rs 11 or six point three per cent over the issue price of Rs 175 per share. The stock advanced further in early trade and touched a high of Rs 193, representing an increase of nearly four per cent from the issue price. Market participants described the initial momentum as constructive for the companys public market entry.

On the Bombay Stock Exchange the shares began trading at Rs 181.10 apiece, up Rs 6 or three point five per cent, and the listing outcome outperformed grey market expectations. Unlisted shares had been quoted at Rs 177 apiece, implying a grey market premium of one point one per cent, according to observers who track unofficial activity. The stronger listing relative to grey market indications suggested firmer demand on listing day.

The initial public offering raised Rs one point five billion (bn) and comprised a book-built fresh issue of seven point six million (mn) equity shares aggregating to Rs 1.3256 bn alongside an offer for sale of one million shares worth Rs 175 mn by promoter shareholders. The issue had been priced in the band of Rs 166 to Rs 175 per share with a lot size of 85 shares and attracted bids for 19.97 million shares against six million shares on offer, resulting in an overall subscription of 3.33 times. Demand was led by non-institutional investors, who subscribed their tranche 7.06 times, with qualified institutional buyers subscribing 3.65 times and retail investors 1.54 times.

The basis of allotment was finalised on Wednesday, April 15, and the company fixed the issue price at Rs 175 per share. MUFG Intime India acted as registrar and Beeline Capital Advisors served as sole book-running lead manager for the offering.

The red herring prospectus indicated that the company planned to allocate Rs 112 mn from net proceeds for capital expenditure on machinery and equipment, Rs 250 mn for repayment of debt and Rs 550 mn for long-term working capital, with remaining funds earmarked for general corporate purposes. The prospectus further clarified that proceeds from the offer for sale would accrue to the selling promoters and would not form part of the companys net proceeds.

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Shares of Om Power Transmission made a positive debut on the National Stock Exchange, listing at Rs 186 per share on Friday and reflecting a premium of Rs 11 or six point three per cent over the issue price of Rs 175 per share. The stock advanced further in early trade and touched a high of Rs 193, representing an increase of nearly four per cent from the issue price. Market participants described the initial momentum as constructive for the companys public market entry. On the Bombay Stock Exchange the shares began trading at Rs 181.10 apiece, up Rs 6 or three point five per cent, and the listing outcome outperformed grey market expectations. Unlisted shares had been quoted at Rs 177 apiece, implying a grey market premium of one point one per cent, according to observers who track unofficial activity. The stronger listing relative to grey market indications suggested firmer demand on listing day. The initial public offering raised Rs one point five billion (bn) and comprised a book-built fresh issue of seven point six million (mn) equity shares aggregating to Rs 1.3256 bn alongside an offer for sale of one million shares worth Rs 175 mn by promoter shareholders. The issue had been priced in the band of Rs 166 to Rs 175 per share with a lot size of 85 shares and attracted bids for 19.97 million shares against six million shares on offer, resulting in an overall subscription of 3.33 times. Demand was led by non-institutional investors, who subscribed their tranche 7.06 times, with qualified institutional buyers subscribing 3.65 times and retail investors 1.54 times. The basis of allotment was finalised on Wednesday, April 15, and the company fixed the issue price at Rs 175 per share. MUFG Intime India acted as registrar and Beeline Capital Advisors served as sole book-running lead manager for the offering. The red herring prospectus indicated that the company planned to allocate Rs 112 mn from net proceeds for capital expenditure on machinery and equipment, Rs 250 mn for repayment of debt and Rs 550 mn for long-term working capital, with remaining funds earmarked for general corporate purposes. The prospectus further clarified that proceeds from the offer for sale would accrue to the selling promoters and would not form part of the companys net proceeds.

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