The IPO price band is set between ₹166 and ₹175 per equity share, with a minimum lot size of 85 shares. As of Day 2, the IPO has been subscribed 71% overall, with the Qualified Institutional Buyers (QIB) portion subscribed 1.18 times, while the Non-Institutional Investors (NII) and retail portions have been booked at 0.38 times and 0.58 times, respectively. This indicates a strong interest from institutional investors, which often bodes well for the overall success of the offering.

In a notable development, the IPO has secured ₹45.01 crore from three anchor investors, which adds to the confidence surrounding the offering. The grey market premium (GMP) for the IPO currently stands at +₹2, suggesting that the estimated listing price of Om Power Transmission shares could reach ₹177. This positive GMP reflects investor sentiment and expectations regarding the company’s performance post-listing.

SBICAP Securities has provided insights into the valuation of the IPO, stating that at the upper price band of ₹175, the issue is valued at a price-to-earnings (P/E) ratio of 27.1x based on FY25 earnings and 19.2x based on annualized 9MFY26 earnings. This valuation indicates a healthy outlook for the company, especially given its demonstrated financial performance.

According to SBICAP Securities, Om Power Transmission has shown impressive growth, with revenue, EBITDA, and PAT increasing at a compound annual growth rate (CAGR) of 52%, 73%, and 88%, respectively, between FY23 and FY25. This growth trajectory positions the company favorably in the competitive landscape of power transmission services.

Exencial Research Partners has also weighed in, describing Om Power Transmission as a compelling investment opportunity. The company boasts a robust order book exceeding ₹744 crore, strong return metrics, and an improving financial landscape, which further enhances its attractiveness to potential investors. The recommendation is clear: subscribe for a favorable long-term outlook.

The basis of allotment for the IPO will be finalized on April 15, with refunds initiated on April 16. Shares are expected to be credited to demat accounts on the same day, and the official listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is anticipated on April 17. Investors are closely monitoring these developments as they prepare for the next steps in the IPO process.

As the IPO progresses, market observers are optimistic about the potential for Om Power Transmission to make a strong debut. The combination of a solid business model, strong financial performance, and positive investor sentiment could lead to a successful listing, setting the stage for future growth in the power transmission sector.

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