OBSC Perfection Listing: OBSC Perfection made a muted market debut today as its shares were listed at ₹110 each on NSE SME, indicating a premium of 10% over the issue price of ₹100. Post listing the stock further jumped to reach ₹115.50 level. The SME IPO, valued at ₹66 crore, was open for subscription from October 22 to October 24, 2024, with a price of between ₹95 and ₹100 apiece.
The issue saw a healthy response from investors, being oversubscribed by 16.56 times. Specifically, the non-institutional segment was oversubscribed 25.87 times, while the retail investor portion was oversubscribed 16.20 times. The QIB portion has also been booked at 10.20 times, as per the exchange data.
The company proposes to use the net proceeds from the issue for several key purposes. It aims to fund capital expenditure requirements for purchasing machinery at its existing manufacturing facilities and to meet the company’s working capital needs and for general corporate purposes.
The company is a precision metal component manufacturer offering a diverse range of high-quality engineered parts tailored to end-user industries across multiple geographies. It primarily serves top original equipment manufacturers (OEMs), who in turn supply critical components to major automotive manufacturers in India.
In the non-automotive sector, the company caters to manufacturers within the defense, marine, and telecommunications infrastructure industries. Although its core expertise lies in the automotive sector, supplying OEMs, the company is actively expanding its presence in the defense, marine, and telecommunications infrastructure sectors, leveraging its precision engineering capabilities.
While it largely supplies domestic customers, the company also maintains an international footprint through export sales.
The company achieved a 103.47% increase in revenue from operations, rising from ₹56.53 crore in FY22 to ₹115.03 crore in FY24. This growth was driven by an expanded capacity to meet increasing demand from existing customers, the acquisition of new customers, and diversification into new industries over the last three years.
Profit after tax surged by 239.12%, from ₹3.60 crore in FY22 to ₹12.21 crore in FY24, attributed to revenue scale-up, the addition of new machinery, and improved operational efficiency, as per the company's DRHP report.
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