OBSC Perfection SME IPO Day 1: Weak Start with Just 0.23x Subscription – Will It Pick Up?

The OBSC Perfection IPO, which opened for subscription on Tuesday, October 22, has not attracted much investor interest so far. By 3:30 p.m. on the first day, the IPO was only subscribed 0.23 times. The retail investor portion saw a subscription of just 0.35 times, and the non-institutional investor (NII) segment was subscribed only 0.09 times. No bids were received from qualified institutional buyers (QIB) as of now.

Purpose of the IPO

OBSC Perfection plans to use the funds from the IPO for several key reasons. The company will invest in new machinery for its existing manufacturing units, address working capital needs, and use some of the funds for general corporate purposes.

OBSC Perfection IPO Details

1. IPO Dates: The subscription period began on Tuesday, October 22, and will close on Thursday, October 24.
2. Price Range: The price per share for this public issue is set between ₹95 to ₹100.
3. IPO Size: OBSC Perfection aims to raise ₹66 crore by issuing 66.02 lakh fresh shares.
4. Lot Size: The minimum lot size for investors is 1,200 shares, which requires a minimum investment of ₹1,20,000.
5. Reservation: The IPO reserves 12.5 lakh shares for QIBs, 9.4 lakh shares for NIIs, and 21.94 lakh shares for retail investors.
6. Allotment Date: The allotment of shares will be finalized on Friday, October 25. Successful investors will have the shares credited to their demat accounts by Monday, October 28, while refunds will be processed for those who did not receive shares.
7. Listing Date: OBSC Perfection’s shares are expected to list on the NSE SME on Tuesday, October 29.
8. GMP (Grey Market Premium): As of Tuesday, the GMP for OBSC Perfection was 0, indicating that the IPO may list at its issue price without a premium.
9. Lead Manager and Registrar: Unistone Capital Pvt Ltd is the book-running lead manager for the IPO, and Bigshare Services Pvt Ltd is the registrar. R.K. Stock Holding is acting as the market maker.

Company Overview

OBSC Perfection is a manufacturer of precision metal components. The company offers a wide range of high-quality, precision-engineered products for various industries. It mainly supplies to top original equipment manufacturers (OEMs) in the automotive sector. Outside of automotive, OBSC Perfection also serves industries such as defense, marine, and telecommunications infrastructure.