New Delhi: Om Power Transmission Limited made a strong debut on the bourses, as it listed at a 6% premium on the NSE Emerge Platform. The Ahmedabad-based power transmission infrastructure company has surpassed its Grey Market Premium estimates, which had suggested a muted debut, showing that investors continue to trust the infrastructure player as India continues to modernize its power grid.
The IPO raised ₹150 crore, with the proceeds being used to fund specialized machinery and equipment for high voltage transmission projects, while a portion will be used to reduce debt, strengthening its balance sheet.
Overall, the IPO was oversubscribed 3.33 times, with the NII quota booked at 7.06 times, the QIB quota booked at 1.54 times and the retail quota booked at 1.54 times. The IPO included a fresh issue of 7.6 million shares worth ₹132.56 crore and an OFS for 1 million shares for the rest by promoters Vasantkumar Narayanbhai Patel, Kanubhai Patel, and Kalpesh Dhanjibhai Patel.
With the demand for interstate and intra-state transmission networks set to grow, Om Power Transmission is expected to benefit from the increasing demand for transmission infrastructure, while the fresh investments in its operations and the paring of its debt is expected to help it bid for larger, more complex government and private sector contracts.
