Weak demand characterized the first day of OBSC Perfection‘s IPO, which opened for subscription on October 22, 2024. With a modest subscription rate that raises concerns among investors, the upcoming listing will be closely monitored as shares are set to trade on the NSE SME platform. The company aims to raise ₹66 crore, primarily focusing on capital expenditures to enhance their manufacturing capabilities.
| Table of Contents |
|---|
| IPO Opening and Closing Dates |
| Subscription Status |
| IPO Details |
| Reservation of Shares |
| Use of Proceeds |
| Allotment and Listing |
| Grey Market Premium (GMP) |
| Business Overview |
| Conclusion |
| FAQ |
IPO Opening and Closing Dates
The IPO for OBSC Perfection will remain open for subscription from October 22 to October 24, 2024. The IPO’s first day is significant as it sets the tone for investor sentiment and demand, which is critical for the overall success of the offering.
Subscription Status
The subscription status on the IPO’s first day was disappointing, with an overall subscription rate of only 0.23 times. Breaking it down further:
| Investor Segment | Subscription Rate |
|---|---|
| Retail Investor | 0.35 times |
| Non-Institutional Investors (NII) | 0.09 times |
| Qualified Institutional Buyers (QIB) | No bids received |
IPO Details
The price band for the OBSC Perfection IPO is set between ₹95 to ₹100 per equity share. The company aims to raise a total issue size of ₹66 crore, offering a total of 66.02 lakh shares. Furthermore, the minimum lot size required for retail investors is 1200 shares, necessitating a minimum investment of ₹1,20,000.
Reservation of Shares
In regards to the allocation of shares, certain segments have been reserved as follows:
| Investor Type | Shares Reserved |
|---|---|
| Qualified Institutional Buyers (QIB) | 12.5 lakh shares |
| Non-Institutional Investors (NII) | 9.4 lakh shares |
| Retail Investors | 21.94 lakh shares |
Use of Proceeds
The proceeds from the IPO are intended for various purposes, including:
- Capital expenditures for purchasing machinery to enhance existing manufacturing facilities.
- Meeting working capital requirements.
- General corporate purposes.
Allotment and Listing
Important dates related to the IPO are as follows:
| Action | Date |
|---|---|
| Allotment Date | October 25, 2024 |
| Demat Credit and Refunds | October 28, 2024 |
| Listing Date | October 29, 2024 (NSE SME platform) |
Grey Market Premium (GMP)
As of the first day, the Grey Market Premium (GMP) is reported at 0. This suggests that the shares are likely to list around the issue price, reflecting a cautious sentiment among investors.
Business Overview
OBSC Perfection specializes in the manufacturing of precision metal components. The company supplies precision-engineered parts to leading original equipment manufacturers (OEMs) across critical sectors, including:
- Automotive
- Defense
- Marine
- Telecommunication Infrastructure
Conclusion
The weak demand observed on the first day of the OBSC Perfection IPO raises important questions regarding the overall investor confidence in the offering. This cautious sentiment may affect the company’s future performance on the stock market. As always, investors are advised to consult with financial advisors before making investment decisions.
FAQ
Q1: What is the main purpose of the OBSC Perfection IPO?
A1: The funds raised will primarily be used for capital expenditures, working capital needs, and general corporate purposes.
Q2: When will investors know about share allotment?
A2: The allotment of shares is scheduled for October 25, 2024.
Q3: What should investors consider regarding the IPO?
A3: Investors should consider the subscription performance, potential listing price, and business fundamentals before making decisions.
