OBSC Perfection IPO Overview

OBSC Perfection IPO is a book-built issue valued at ₹66.02 crores, consisting entirely of a fresh issue of 66.02 lakh shares.

The IPO opens for subscription on October 22, 2024, and closes on October 24, 2024. Allotments are expected to be finalized on 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 between ₹95 and ₹100 per share. Retail investors must apply for a minimum lot size of 1,200 shares, requiring a minimum investment of ₹120,000. For HNI investors, the minimum lot size is 2 lots (2,400 shares), totaling ₹240,000.

Unistone Capital Pvt Ltd serves as the book-running  lead manager for this IPO, while Bigshare Services Pvt Ltd acts as the registrar. The market maker for the OBSC Perfection IPO is R.K. Stock Holding.

Refer to OBSC Perfection IPO RHP for detailed information

OBSC Perfection IPO Important dates

OBSC Perfection IPO opens on October 22, 2024, and closes on October 24, 2024.

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 Financial Performance

OBSC Perfection Limited’s revenue increased by 20% and profit after tax (PAT) rose by 167% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 31 Aug 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets 11,066.37 8,650.59 6,916.01 4,847.48
Revenue 5,700.15 11,611.41 9,691.03 5,672.42
Profit After Tax 603.05 1,221.21 457.39 360.11
Net Worth 3,610.15 3,007.1 1,785.89 1,328.47
Reserves and Surplus 1,825.15 1,222.1 595.89 138.47
Total Borrowing 4,967.82 4,147.25 3,340.48 1,897.54

OBSC Perfection IPO Key Performance Indicator

The market capitalization of OBSC Perfection IPO is Rs 244.52 Cr.

KPI as of March 31, 2024.

KPI Values
ROE 40.61%
ROCE 31.49%
Debt/Equity 1.38
RoNW 40.61%
P/BV 5.93
PAT Margin (%) 10.62

OBSC Perfection IPO Objectives

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects:

  1. Funding capital expenditure requirements towards the purchase of machinery for the existing manufacturing facility (“Unit III”) at No. 126, Mappedu Village, Sriperumbudhur Taluka-Mappedu, Thiruvallur631402, Tamil Nadu, India. (“Proposed Expansion at Unit III”);
  2. Funding capital expenditure requirements towards the purchase of machinery for the 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. Funding working capital requirements of the Company; and
  4. General Corporate Purposes.

OBSC Perfection IPO Lot Size

Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 1200 ₹120,000
Retail (Max) 1 1200 ₹120,000
HNI (Min) 2 2,400 ₹240,000

OBSC Perfection IPO Details

IPO Date October 22, 2024 to October 24, 2024
Listing Date [.]
Face Value ₹10 per share
Price Band ₹95 to ₹100 per share
Lot Size 1200 Shares
Total Issue Size 6,602,400 shares
(aggregating up to ₹66.02 Cr)
Fresh Issue 6,602,400 shares
(aggregating up to ₹66.02 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 17,850,000
Share holding post issue 24,452,400
Market Maker portion 333,600 shares
R.K.Stock Holding

OBSC Perfection IPO Company Overview and Services

OBSC Perfection Limited, established in 2017, specializes in manufacturing precision metal components. The company offers a diverse range of high-quality engineered products tailored for various end-user industries across multiple regions.

The product portfolio includes a wide array of precision metal components, such as cut blanks, shafts, torsion bars, piston rods, rack bar semi-finished products, pinions, drive shafts, gear shifters, cable end fittings, sensor bosses, sleeves, push plates, hubs, housings, and various fasteners and connectors. As of July 23, 2024, OBSC Perfection boasts a robust catalog of 24 distinct products.

OBSC Perfection primarily serves Original Equipment Manufacturers (OEMs), supplying critical components and parts to leading automobile manufacturers in India. Beyond the automotive sector, the company also caters to manufacturers in the defense, marine, and telecom infrastructure industries.

The company operates four manufacturing facilities, three of which are strategically located in Pune, Maharashtra, a prominent automotive hub. The facilities include Unit I (the main manufacturing facility), Unit II, and Unit IV. Additionally, OBSC Perfection has a facility in Chennai, Tamil Nadu, another key automotive center, enhancing its production capabilities and logistical efficiency.

OBSC Perfection IPO SWOT Analysis

Strengths:

  1. Established Experience: Founded in 2017, OBSC Perfection has quickly positioned itself as a manufacturer of high-quality precision metal components, showcasing its rapid growth and expertise in the industry.
  2. Diverse Product Portfolio: The company offers a wide range of 24 precision engineering products, catering to various industries, which enhances its market appeal and reduces dependency on a single product line.
  3. Strong OEM Relationships: By serving Original Equipment Manufacturers (OEMs) in the automotive sector, OBSC benefits from stable demand and long-term contracts with reputable clients.
  4. Strategic Manufacturing Locations: The presence of manufacturing facilities in Pune and Chennai—key automotive hubs—facilitates efficient production and supply chain management, positioning the company favorably in the market.

Weaknesses:

  1. Relatively Short Track Record: Being established only in 2017, OBSC Perfection has a shorter history compared to more established competitors, which may affect investor confidence.
  2. Dependence on Key Sectors: The company’s focus on the automotive sector exposes it to fluctuations in this market, especially in times of economic downturn or changes in consumer preferences.
  3. Limited Global Presence: The current operations are primarily focused within India, which may limit growth opportunities compared to companies with a more international footprint.

Opportunities:

  1. Growing Automotive Industry: With increasing demand for automotive components, especially in electric vehicles and advanced manufacturing technologies, OBSC can expand its market share and product offerings.
  2. Expansion into Non-Automotive Sectors: The company’s ability to supply to defense, marine, and telecom sectors presents opportunities for diversification and growth beyond the automotive market.
  3. Investment in R&D: Continued investment in research and development can lead to innovation, enabling OBSC to develop advanced products that meet evolving industry standards and customer needs.

Threats:

  1. Intense Competition: The precision metal component industry is highly competitive, with numerous players vying for market share, which can lead to price pressures and reduced margins.
  2. Economic Volatility: Fluctuations in economic conditions, particularly in key sectors like automotive and manufacturing, can impact demand for OBSC’s products.
  3. Regulatory Challenges: Changes in regulations related to manufacturing standards, environmental compliance, or tariffs can affect operational costs and market access, posing risks to business stability.

OBSC Perfection IPO GMP Details

OBSC Perfection SME IPO last GMP is ₹0, last updated Oct 22nd 2024 . With the price band of 100.00, OBSC Perfection SME IPO’s estimated listing price is ₹100 (cap price + today’s GMP).The expected percentage gain/loss per share is 0.00%.

**The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates (sub2), nor do we recommend trading in grey market.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
22-10-2024 100.00 ₹0  — ₹100 (0%) 22-Oct-2024
21-10-2024 100.00 ₹0  — ₹100 (0%) 21-Oct-2024
20-10-2024 100.00 ₹0  — ₹100 (0%) 20-Oct-2024
19-10-2024 100.00 ₹0  — ₹100 (0%) 19-Oct-2024
18-10-2024 100.00 ₹0  — ₹100 (0%) 18-Oct-2024
17-10-2024 100.00 ₹0  — ₹100 (0%) 17-Oct-2024

What is IPO GMP?

The grey market premium (GMP) reflects the unofficial trading price of an IPO before its listing, offering insights into its potential market performance. A positive GMP indicates that the IPO may yield profits, while a negative GMP suggests a possible discount upon listing. However, it’s essential to recognize that IPO GMP can be highly volatile. Therefore, investors should not make decisions solely based on the GMP but should thoroughly assess all relevant factors before investing.

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OBSC Perfection IPO Subscription status 

OBSC Perfection IPO subscribed 0.12 times. The public issue subscribed 0.22 times in the retail category, 0.00 times in QIB, and 0.05 times in the NII category by October 22, 2024 .

Investor Category Subscription (times) Shares Offered* Shares bid for Total Amount (Rs Cr.)*
Anchor Investors 1 18,79,200 18,79,200 18.792
Qualified Institutions 0.00 12,55,200 0 0
Non-Institutional Buyers*** 0.05 9,40,320 48,000 0.480
Retail Investors 0.22 21,94,080 4,90,800 4.908
Total ** 0.12 43,89,600 5,38,800 5.388

OBSC Perfection IPO Allotment status 

The allotment status of OBSC Perfection IPO is expected to be available on October 25, 2024.

OBSC Perfection IPO allotment status is not available at this time. OBSC Perfection IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for OBSC Perfection Limited IPO allotment status.

OBSC Perfection IPO Contact Details

6F, 6th Floor, M-6, Uppal Plaza,
Jasola District Centre,
South Delhi- 110025
Phone: 022-2697 2586
Email: abhishek@obscperfection.com
Website: https://www.obscperfection.com/

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.