OBSC Perfection is a precision metal component manufacturer offering a diversified suite of precision engineering products which are high-quality engineered parts across end-user industries and geographies. They primarily cater to top OEMs who ultimately supply various components and parts to top automotive manufacturing companies of India.
OBSC Perfection, an Book Built Issue amounting to ₹66.02 Crores, consisting entirely an Fresh Issue of 66.02 Lakh Shares. The subscription period for the OBSC PerfectionIPO opens on October 22, 2024, and closes on October 24, 2024. The allotment is expected to be finalized on or about Friday, October 25, 2024, and the shares will be listed on the NSE SME with a tentative listing date set on or about Tuesday, October 29, 2024.
The Shareprice band OBSC Perfection IPO is set at ₹95 to ₹100 equity per share, with a minimum lot size of 1,200 shares. Retail investors are required to invest a minimum of ₹1,20,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (2,400 shares), amounting to ₹2,40,000.
UNISTONE CAPITAL PRIVATE LIMITED is the book-running lead manager and BIGSHARE SERVICES PRIVATE LIMITED is the registrar for the Issue. R. K. Stock Holding Private Limited will act as Market Maker for the OBSC Perfection IPO.
OBSC Perfection LimitedIPO GMP Today The Grey Market Premium of OBSC Perfection LimitedIPO is expected to be ₹0 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.
OBSC Perfection LimitedIPO Live Subscription Status Today: Real-Time Updates As of 06:17 PM on 24 October 2024, the OBSC Perfection IPO live subscription status shows that the IPO subscribed 15.46 times on its Final day of subscription period. Check the OBSC Perfection IPO Live Subscription Status Today at NSE.
OBSC Perfection LimitedIPO Anchor Investors Report OBSC Perfection Exports has raised ₹18.79 Crore from Anchor Investors at a price of ₹110 per shares in consultation of the Book Running Lead Managers. The company allocated 18,79,200equity shares to the Anchor Investors. Check Full list of OBSC Perfection Anchor Investors List.
Note:- Equity Shares allotted to Anchor Investors (if any) are allotted from Qualified Institutional Buyers (QIBs) reservation portion. Note:- The Number of shares offered shown IPO subscription section table is calculated at the lower end of the price band and Number of shares calculated in IPO details table section is calculated at upper end of the price band in case of Book Building Issue, so there can be difference. This is because we assume shares will be issued by the company at upper band as Anchor Investors also subscribe at upper band and shares will be issued at lower band only if in case of undersubscription of IPO. Note:- Market Maker portion (if any) are not shown separately in subscription table and included in NIIs reservation portion.
OBSC Perfection Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online OBSC Perfection IPO allotment date is 25 October, 2024, Friday. OBSC Perfection IPO Allotment will be out on 25th October 2024 and will be live on Registrar Website from the allotment date. Check OBSC Perfection LimitedIPO Allotment Status here. Here's how you can check the allotment status: - Navigate to the IPO allotment status page. - Select OBSC Perfection LimitedIPO from the dropdown list of IPOs. - Enter your application number, PAN, or DP Client ID. - Submit the details to check your allotment status. By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.
Objectives of OBSC Perfection LimitedIPO OBSC Perfection Issue Proceeds from the Fresh Issue will be utilized towards the following objects : 1. ₹1,542.00 Lakhs will be used for Funding capital expenditure requirements towards purchase of machinery for their existing manufacturing facility (“Unit III”) at No. 126, Mappedu Village, Sriperumbudhur Taluka-Mappedu, Thiruvallur631402, Tamil Nadu, India. (“Proposed Expansion at Unit III”) 2.₹1,517.00 Lakhs will be used for Funding capital expenditure requirements towards purchase of machinery for their existing manufacturing facility (“Unit IV”) at Gat no. 417, Nighoje, Near Hotel Maha Laxmi and Mess, Nighoje, Chakan, Taluka-Khed, Pune-410501, Maharashtra, India. (“Proposed Expansion at Unit IV”) 3.₹1,666.00 Lakhs will be used for Funding working capital requirements of the Company; and 4. General Corporate Purposes
66,02,400 Equity Shares (aggregating up to ₹66.02 Cr)
Fresh Issue
66,02,400 Equity Shares (aggregating up to ₹66.02 Cr)
Offer for Sale
NIL
Issue Type
Book Built Issue
Listing At
NSE SME
Share holding pre issue
1,78,50,000
Share holding post issue
2,44,52,400
OBSC Perfection IPO Lot Size
Application
Lots
Shares
Amount
Retail (Min)
1
1,200
₹1,20,000
Retail (Max)
1
1,200
₹1,20,000
HNI (Min)
2
2,400
₹2,40,000
OBSC Perfection IPO Timeline (Tentative Schedule)
IPO Open Date
Tuesday, October 22, 2024
IPO Close Date
Thursday, October 24, 2024
Basis of Allotment
Friday, October 25, 2024
Initiation of Refunds
Monday, October 28, 2024
Credit of Shares to Demat
Monday, October 28, 2024
Listing Date
Tuesday, October 29, 2024
Cut-off time for UPI mandate confirmation
5 PM on October 24, 2024
OBSC Perfection IPO Reservation
Investor Category
Shares Offered
Reservation %
QIB Portion
12,55,200
Not More than 50% of the Issue
Non-Institutional Investor Portion
9,40,320
Not Less than 15% of the Issue
Retail Shares Offered
21,94,080
Not Less than 35% of the Issue
Market Maker Portion
3,33,600
-
Achor Investor Portion
18,79,200
Allotted from QIB Portion
OBSC Perfection IPO Promoter Holding
Share Holding Pre Issue
100%
Share Holding Post Issue
%
OBSC Perfection IPO Subscription Status
Investor Category
Shares Offered
Shares Bid For
No oF Times Subscribed
Qualified Institutional Buyers (QIB)
12,55,200
1,28,08,800
10.20
Non Institutional Investors(NIIS)
12,73,920
2,46,62,400
19.36
Retail Individual Investors (RIIs)
21,94,080
3,55,40,400
16.20
Total
47,23,200
7,30,11,600
15.46
About OBSC Perfection Limited
OBSC Perfection is a precision metal component manufacturer offering a diversified suite of precision engineering products which are high-quality engineered parts across end-user industries and geographies. They primarily cater to top original equipment manufacturers (“OEMs”) who ultimately supply various components and parts to top automotive manufacturing companies of India. In non-automotive sector, they cater to manufacturers of Defense, Marine & Telecommunication Infrastructure industries. At present, their core expertise lies in serving the automotive industry i.e. supplying OEMs. As a result of which, currently, majority of their business comes from auto industry and defense, marine, and telecommunication infrastructure sectors formsa small portion of the business.
They operate out of four strategically located manufacturing facilities with three of their manufacturing facilities including their principal manufacturing facilities at Pune, Maharashtra, a prominent auto hub. They manufacture a wide range of precision metal components including but not limited to cut blanks, shafts / spline shafts, torsion rods, piston rods, rack bar semi-finished, pinion, drive shafts, gear shifters, cable end fittings, sensor boss, sleeves, push plate, hubs, housing – brass and aluminium, fork bolt, fasteners, connectors, ball pin, ball pin housing, flange, male female ring, dozing adapter, housing for a diversified base of customers. They are part of the Anglian Omega Group, which began operations in 1969 with a single bright bar factory in Faridabad, Haryana.
INDIAN AUTO COMPONENTS SECTOR IN INDIA India has become the fastest-growing economy in the world in recent years. This fast growth, coupled with rising incomes, a boost in infrastructure spending and increased manufacturing incentives, has accelerated the automobile industry. The two-wheeler segment dominated the automobile industry because of the Indian middle class, with automobile sales standing at 23.85 million units in FY24.
Significant demand for automobiles also led to the emergence of more original equipment and auto components manufacturers. As a result, India developed expertise in automobiles and auto components, which helped boost international demand for Indian automobiles and auto components. Hence, the Indian automobile industry has a considerable impact on the auto component industry.
India’s auto component industry is an important sector driving macroeconomic growth and employment. The industry comprises players of all sizes, from large corporations to micro entities, spread across clusters throughout the country. The auto components industry accounted for 2.3% of India’s GDP and provided direct employment to more than 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of India's GDP. The Automotive Mission Plan (2016-26) projects to provide direct incremental employment to 3.2 million by 2026.
The Indian auto components industry is expected to grow to US$ 200 billion by FY26. This growth will be backed by strong export demand which is expected to rise at an annual rate of 23.9% to reach US$ 80 billion by 2026 due to the high development prospects in all vehicle industry segments.
India’s auto components industry’s market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. Due to the Oz670 growth in demand for Indian auto components, several Indian and international players have entered the industry. India’s auto component industry is broadly classified into organised and unorganised sectors. While the unorganised sector consists of low-valued items and mostly serves the aftermarket category, the organised sector serves OEMs and includes high-value precision instruments.
The automobile component industry turnover stood at Rs. 6.14 lakh crore (US$ 74.1 billion) during FY24, registering a revenue growth of 9.8% as compared to FY23. Domestic OEM supplies contributed ~54% to the industry’s turnover, followed by domestic aftermarket (~10%) and exports (~18%), in FY24.The component sales to OEMs in the domestic market grew by 8.9% to Rs. 5.18 lakh crore (US$ 62.4 billion). The aftermarket for auto components grew by 10.0% during FY24 reaching Rs. 9.38 lakh crore (US$ 11.3 billion). Over FY16 to FY24, the automotive components industry registered a CAGR of 8.63%, reaching US$ 74.1 billion in FY24.
As per the Automobile Component Manufacturers Association (ACMA) forecast, auto component exports from India are expected to reach US$ 30 billion by 2026. The auto component industry is projected to record US$ 200 billion in revenue by 2026. Strong international demand and resurgence in the local original equipment and aftermarket segments are predicted to help the auto component industry grow 20-23% in FY22.
In fiscal year 2023-24 (April-January), the total number of automobiles sold was 19.72 million units. In (AprilJanuary) 2023-24, the total production of passenger vehicles, commercial vehicles, three-wheelers, twowheelers, and quadricycles was 23.36 million units.
INDIAN ENGINEERING SECTOR OUTLOOK The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables.
Imports of Electrical Machinery in India increased to US$ 12.30 billion in FY24. The Indian electrical equipment industry comprises of two broad segments, Generation equipment (boilers, turbines, generators) and Transmission & Distribution (T&D) and allied equipment like transformers, cables, transmission lines, etc. The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP. Incentives for capacity addition in power generation will further increase the demand for electrical machinery.
The quick estimates of Index of Industrial Production (IIP) for FY24 came at 156.2, improving from 146.7 in FY23.
The electrical equipment market share in India is expected to increase from US$ 52.98 billion in 2022 to US$ 125 billion by 2027, implying a robust CAGR of 11.68%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025.
Earthmoving equipment sales grew by 23% YoY in second quarter of FY 2024, as the total equipment numbers sold increased to 22,334.
Foundry industry has a turnover of approx. US$ 20 billion with exports of approx. US$ 3.54 billion.
There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of US$ 2.3– 2.7 million and an average turnover of US$ 6.2-6.9 million.
The Indian industrial fasteners market was valued at US$ 9,064 million in 2022 and is projected to reach US$ 17,868 million by 2030, registering a CAGR of 7.9% during the forecast period (2023-2030).
The Indian agricultural equipment market has reached a value US$ 10.25 billion in 2023 and is anticipated to grow at a CAGR of 5.24% through 2029.
The Indian machine tool market size reached US$ 1.5 billion in 2023 and is expected to reach US$ 3.2 billion by 2032, exhibiting a growth rate (CAGR) of 8.2% during 2024-32.
The Indian automated material handling (AMH) market was valued at US$ 1,353.8 million in 2020 and is expected to go up to US$ 2,739.34 million by 2026 at a CAGR of 12.7%.
OBSC PERFECTION LIMITED COMPETITIVE STRENGTHS 1. Manufacturing facilities situated at two of the most prominent auto hubs of India 2. Strategic advantage through streamlined supply chain with adjacent raw material supplier 3. Consistent track record of growth and financial performance 4. Experienced and dedicated promoter and professional management team with extensive domain knowledge
OBSC PERFECTION LIMITED STRATEGIES 1. Strengthening their core capabilities by expanding their production capacity 2. Expanding their manufacturing footprint by setting up of a manufacturing facility in Sanand, Gujarat 3. Entering precision clamping solutions for the machining industry
OBSC PERFECTION LIMITED RISK FACTORS & CONCERNS 1. The business is dependent on the performance of the automotive industry. 2. A downgrade in credit ratings of the promoter group entity, Omega Seiki Mobility Private Limited. 3. The Company is dependent on a domestic market for its sales and any downturn in it could reduce the sales. 4. Their three manufacturing facilities are located in Pune, Maharashtra and Thiruvallur, Tamilnadu which exposes their operations to potential risks arising from local and regional factors. 5. A significant portion of the domestic sales are derived from the West zone and South zone.
OBSC Perfection Limited Financial Information (Restated Consolidated)
Amount in (₹ in Lakh)
Period Ended
Mar 31, 2024
Mar 31, 2023
Mar 31, 2022
Reserve of Surplus
1,222.10
595.89
138.47
Total Assets
8,650.59
6,916.01
4,847.48
Total Borrowings
4,147.25
3,340.48
1,897.54
Fixed Assets
4,082.66
3,030.37
2,211.26
Cash
58.41
60.51
39.49
Net Borrowing
4,088.84
3,279.97
1,858.05
Revenue
11,611.41
9,691.03
5,672.42
EBITDA
2,076.10
973.81
708.39
PAT
1,221.21
457.39
360.11
EPS
6.84
2.56
2.02
Note 1:- RoE & ROCE calculation in KPI is based on 31st Mar, 2024 Data, given in RHP. Note 2:- Pre EPS and Post EPS calculation in KPI is based (PAT) on 31st Mar, 2024 Data, given in RHP. Note 3:- RoNW calculation in KPI is based on 31st Mar, 2024 Data, given in RHP. Note 4:- Price to Book Value calculation in KPI is based on Cap Price Post Issue, given in Newspaper Advertisement.
Key Performance Indicator
KPI
Values
EPS Pre IPO (Rs.)
₹6.84
EPS Post IPO (Rs.)
₹4.99
P/E Pre IPO
14.61
P/E Post IPO
20.04
ROE
40.61%
ROCE
31.49%
P/BV
2.39
Debt/Equity
1.38
RoNW
40.61%
OBSC Perfection Limited IPO Peer Comparison
Company Name
EPS
ROCE
ROE
P/E (x)
P/Bv
Debt/Equity
RoNW (%)
OBSC Perfection Limited
₹4.99
31.49%
40.61%
20.04
2.39
1.38
40.61%
RACL Geartech Limited
₹32.3
17.8%
21.2%
29.3
5.01
1.41
21.2%
Talbros Automotive Component Limited
₹18.3
21.4%
17.2%
22.6
3.46
0.18
17.2%
OBSC Perfection Limited Contact Details
OBSC PERFECTION LIMITED
6F, 6th Floor, M-6, Uppal Plaza, Jasola District Centre, South Delhi- 110025, India Contact Person : Abhishek Kumar Pandey Telephone : 011-2697 2586 Email Id : abhishek@obscperfection.com Website : https://www.obscperfection.com/
OBSC Perfection IPO Registrar and Lead Manager(s)
Registrar : BIGSHARE SERVICES PRIVATE LIMITED Contact Person : Babu Rapheal C Telephone : 022 6263 8200 Email Id : ipo@bigshareonline.com Website :www.bigshareonline.com
Lead Manager : UNISTONE CAPITAL PRIVATE LIMITED Contact Person : Brijesh Parekh Telephone : 022 4604 6494 Email Id : mb@unistonecapital.com Website : www.unistonecapital.com
OBSC Perfection IPO Review
OBSC Perfection is a precision metal component manufacturer offering a diversified suite of precision engineering products which are high-quality engineered parts across end-user industries and geographies. They primarily cater to top OEMs who ultimately supply various components and parts to top automotive manufacturing companies of India.
The Company is led by the Promoters, namely, SAKSHAM LEEKHA, ASHWANI LEEKHA, SANJEEV VERMA, RAJNI VERMA, ASHA NARANG, SANDEEP NARANG, RICHARD BLUM, ADRIANNE BLUM, PASCAL BLUM, SIMON BLUM, who have vast experience in the field of steel and auto components industry along with other industries who act as a driving force of the Company.
The Revenues from operations for the Five months period ended August 31, 2024 and the Fiscals 2024, 2023 and 2022 were ₹5,700.15 lakhs, ₹11,611.41 lakhs, ₹9,691.03 lakhs, and ₹5,672.42 lakhs, respectively. The EBITDA for the Five months period ended August 31, 2024 and the Fiscals 2024, 2023 and 2022 were ₹1,031.99 lakhs, ₹2,076.10 lakhs, ₹973.81 lakhs and ₹708.39 lakhs, respectively. The Profit after Tax for the Five months period ended June 30, 2024 and the Fiscals 2024, 2023 and 2022 was ₹603.05 lakhs, ₹1,221.21 lakhs, ₹457.39 lakhs and ₹360.11 lakhs, respectively.
For the OBSC Perfection IPO, the company is issuing shares at a pre-issue EPS of ₹6.84 and a post-issue EPS of ₹4.99. The pre-issue P/E ratio is 14.61x, while the post-issue P/E ratio is 20.04x against the Industry P/E ratio is 40.45x. The company's ROCE for FY24 is 31.49% and RoE for FY24 is 40.61%. These metrics suggest that the IPO is fairly priced.
The Grey Market Premium (GMP) of OBSC Perfection showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the OBSC Perfection LimitedIPO for Listing gain or long term investment purposes.
Disclaimer:The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information.
About the Author CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades. You can connect with the Author on Telegram, YouTubeand Website.
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