The Om Power Transmission IPO has garnered attention with its grey market premium and subscription rates. Here’s what you need to know.
Om Power Transmission, a company specializing in engineering, procurement, and construction (EPC) services in power transmission infrastructure, has recently launched its Initial Public Offering (IPO). The subscription for the IPO commenced on April 9 and is set to conclude on April 13, 2026. Investors are keenly observing this IPO due to its promising financial metrics and the current market conditions.
The IPO price band has been established between ₹166 and ₹175 per equity share, with a minimum lot size of 85 shares. This pricing strategy aims to attract a broad range of investors, from retail to institutional. Notably, the IPO has already secured ₹45.01 crore from three anchor investors, indicating strong initial interest.
As of Day 2 of the subscription, the IPO has been subscribed 71% overall. The Qualified Institutional Buyers (QIB) portion was subscribed 1.18 times, while the Non-Institutional Investors (NII) portion was booked 0.38 times, and the retail portion saw a subscription rate of 0.58 times. This mixed response reflects varying levels of interest among different investor categories.
In the grey market, the premium (GMP) for the IPO is currently at +₹2, suggesting a modest expectation for the stock’s performance post-listing. The estimated listing price of Om Power Transmission shares is projected to be around ₹177, slightly above the upper price band of the IPO. This indicates a cautious optimism among investors regarding the company’s future performance.
According to SBICAP Securities, 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 reflects the company’s strong growth trajectory, with revenue, EBITDA, and profit after tax (PAT) growing at a compound annual growth rate (CAGR) of 52%, 73%, and 88% respectively from FY23 to FY25.
Exencial Research Partners has also highlighted that Om Power Transmission represents a compelling investment opportunity, supported by a robust order book exceeding ₹744 crore and strong return metrics. Analysts recommend subscribing to the IPO, citing a favorable long-term outlook for the company.
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 listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on April 17. As the IPO progresses, market observers will be closely watching the final subscription numbers and the company’s performance post-listing.
