OBSC Perfection is a distinguished precision metal component manufacturer, known for providing a diversified suite of precision engineering products. The company specializes in high-quality engineered parts that cater primarily to top OEMs (Original Equipment Manufacturers), which in turn supply components to leading automotive manufacturing companies in India. This strategic positioning has allowed OBSC to become a vital player in the precision engineering sector.

IPO Details

The OBSC Perfection IPO is a Book Built Issue amounting to ₹66.02 crores, consisting entirely of a Fresh Issue of 66.02 Lakh Shares. The subscription period for the IPO opens on October 22, 2024, and closes on October 24, 2024. Investors can expect the allotment to be finalized on or about October 25, 2024, with a tentative listing date on the NSE SME set for October 29, 2024.

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

Lead Managers and Market Makers

UNISTONE CAPITAL PRIVATE LIMITED is the book-running lead manager for the IPO, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar. R. K. Stock Holding Private Limited will act as the Market Maker for this offering.

OBSC Perfection Limited IPO GMP Today

The Grey Market Premium (GMP) for OBSC Perfection Limited IPO is expected to be ₹0, indicating no anticipated gains based on the company's financial performance. It is crucial to understand that no real trading occurs based on the GMP, making price discovery impossible before shares are listed on the stock exchange. The GMP is solely dependent on demand and supply in an unregulated market, and its mention is for informational purposes only.

Live Subscription Status

The OBSC Perfection IPO will open for subscription on October 22, 2024. Investors are encouraged to keep an eye on real-time subscription status updates on the NSE website during the subscription period.

Allotment Process

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

Navigate to the IPO allotment status page.

Select OBSC Perfection Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

By adhering to these steps, investors can swiftly ascertain their allotment status and proceed with their investment plans.

Objectives of OBSC Perfection Limited IPO

The proceeds from the OBSC Perfection IPO will be utilized for several significant purposes:

₹1,542.00 lakhs will fund capital expenditure requirements towards the purchase of machinery for their existing manufacturing facility, known as Unit III, located at No. 126, Mappedu Village, Sriperumbudur Taluka-Mappedu, Thiruvallur, Tamil Nadu. This is part of the proposed expansion at Unit III.

₹1,517.00 lakhs will also be allocated for capital expenditure toward machinery at their Unit IV facility in Nighoje, Pune, Maharashtra.

₹1,666.00 lakhs will be directed towards meeting the company’s working capital requirements.

Remaining funds will be used for general corporate purposes.

Financial Performance

OBSC Perfection's financial metrics reflect steady growth over recent years. The revenues from operations for the five months period ending August 31, 2024, and for the fiscal years 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 same periods were ₹1,031.99 lakhs, ₹2,076.10 lakhs, ₹973.81 lakhs, and ₹708.39 lakhs. The Profit After Tax (PAT) figures were ₹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, compared to the industry P/E ratio of 40.45x. The company's ROCE for FY24 stands at 31.49%, while the RoE is 40.61%. These metrics suggest that the IPO is fairly priced, although caution is advised.

Promoters and Leadership

The leadership at OBSC Perfection is comprised of experienced promoters, including Saksham Leekha, Ashwani Leekha, Sanjeev Verma, Rajni Verma, Asha Narang, Sandeep Narang, Richard Blum, Adrianne Blum, Pascal Blum, and Simon Blum. Their extensive experience in the steel and auto components industry acts as a driving force behind the company’s operations and growth strategy.

Market Insights and Recommendations

With a Grey Market Premium (GMP) indicating potential listing gains of 0%, investors are advised to approach the OBSC Perfection Limited IPO with caution. Given the company's financial performance and valuation metrics, our recommendation is to avoid the OBSC Perfection IPO for both listing gains and long-term investment purposes.

In conclusion, while OBSC Perfection Limited offers a well-established presence in the precision metal component manufacturing sector, the current financial indicators and market conditions suggest that investors should think carefully before participating in this IPO.

For further insights and the latest updates on best IPOs, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi. Stay informed with the latest market developments at Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for consistent stock market trading and investment calls by CA Abhay Varn, SEBI Registered Research Analyst, and Finance Saathi Telegram Channel for ongoing share market news and IPO updates.

Embark on your stock market journey by opening a free Demat account with Choice Broking FinX.