OBSC Perfection is a leading manufacturer of precision metal components, offering a diverse range of high-quality engineering products across various end-user industries and geographies. The company primarily serves top Original Equipment Manufacturers (OEMs) who supply components to major automotive manufacturers in India.

The Initial Public Offering (IPO) for OBSC Perfection consists of a Book Built Issue amounting to ₹66.02 crores, comprised entirely of a fresh issue of 66.02 lakh shares. The subscription period is open from October 22 to October 24, 2024, with the allotment expected to be finalized on or around October 25, 2024. Shares will be listed on the NSE SME, with a tentative listing date around October 29, 2024.

The share price band for the OBSC Perfection IPO is set between ₹95 and ₹100 per equity share, with a minimum lot size of 1,200 shares. Retail investors must invest a minimum of ₹1,20,000, while High-Net-Worth Individuals (HNIs) are required to invest in 2 lots (2,400 shares), totaling ₹2,40,000.

The IPO is managed by UNISTONE CAPITAL PRIVATE LIMITED as the book-running lead manager, and BIGSHARE SERVICES PRIVATE LIMITED acts as the registrar for the issue. R. K. Stock Holding Private Limited will serve as the Market Maker for the OBSC Perfection IPO.

OBSC Perfection Limited IPO Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) for OBSC Perfection is reported at ₹0, indicating minimal market speculation regarding the IPO's potential performance. Trading based on GMP can be unreliable, so this figure should be considered for educational purposes only.

OBSC Perfection Limited IPO Live Subscription Status Today

As of 6:17 PM on October 24, 2024, the OBSC Perfection IPO has been subscribed 15.46 times on its final day of the subscription period. Investors can check the live subscription status on the NSE website.

OBSC Perfection Limited IPO Anchor Investors Report

OBSC Perfection has raised ₹18.79 crores from anchor investors at a price of ₹110 per share, allocating 18,79,200 equity shares to these investors. The shares allotted to anchor investors come from the Qualified Institutional Buyers (QIBs) reservation portion.

OBSC Perfection Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online

The allotment date for the OBSC Perfection IPO is set for October 25, 2024. To check your allotment status, follow these steps:

• Navigate to the IPO allotment status page.
• Select OBSC Perfection Limited IPO from the dropdown list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to check your allotment status.

These steps enable investors to efficiently confirm their allotment status and take further actions.

Objectives of OBSC Perfection Limited IPO

The proceeds from the fresh issue will be allocated towards:

1. ₹1,542.00 lakhs for funding capital expenditure on machinery for their existing manufacturing facility (“Unit III”) in Tamil Nadu.
2. ₹1,517.00 lakhs for funding capital expenditure on machinery for their existing manufacturing facility (“Unit IV”) in Maharashtra.
3. ₹1,666.00 lakhs for funding working capital requirements.
4. General corporate purposes.

OBSC Perfection IPO Review

OBSC Perfection has positioned itself as a critical player in the precision metal component manufacturing sector. The company's management team includes experienced professionals such as Saksham Leekha, Ashwani Leekha, Sanjeev Verma, and Rajni Verma, among others, who bring extensive knowledge from the steel and auto components industries.

The revenues from operations for the five-month period ending August 31, 2024, were reported at ₹5,700.15 lakhs, with fiscal years showing revenues of ₹11,611.41 lakhs in 2024, ₹9,691.03 lakhs in 2023, and ₹5,672.42 lakhs in 2022. The EBITDA for the same five-month period was ₹1,031.99 lakhs, and profit after tax was ₹603.05 lakhs.

For this IPO, OBSC Perfection 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 stands at 20.04x, compared to the industry P/E ratio of 40.45x. The company's Return on Capital Employed (ROCE) for FY24 is 31.49%, and Return on Equity (RoE) is 40.61%, indicating that the IPO is fairly priced.

Given the company's financial performance and valuation metrics, the Grey Market Premium suggests negligible potential for listing gains. Therefore, we recommend investors to avoid applying for the OBSC Perfection Limited IPO for both listing gains and long-term investment purposes.

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