OBSC Perfection List: OBSC Perfection today made a quiet debut on the market while its shares were listed at ₹110 each on NSE SME, i.e. a premium of 10% on the issue price of ₹100. The publication of the stock price jumped again to reach ₹Level 115.50. The IPO of an SME, valued at ₹66 crore, was open for subscription from October 22 to October 24, 2024, with a price ranging between ₹95 and ₹100 each.

The issue received a positive response from investors, being oversubscribed 16.56 times. Specifically, the non-institutional segment was oversubscribed 25.87 times, while the share of individual investors was oversubscribed 16.20 times. The QIB portion has also been booked at 10.20 times, according to exchange data.

The Company proposes to use the net proceeds from the offering for several key purposes. It aims to finance capital expenditure required for the purchase of machinery in its existing manufacturing facilities and to meet the working capital requirements of the company as well as general corporate purposes.

About OBSC Perfection

The company is a precision metal component manufacturer offering a diverse range of high-quality engineered parts suitable for end-user industries across multiple geographies. It is mainly serves major original equipment manufacturers (OEMs)which in turn supplies essential components to India’s leading automobile manufacturers.

In the non-automotive sector, the company caters to manufacturers in the defense, marine and telecommunications infrastructure sectors. Although its core expertise lies in the automotive sector, supplying OEMs, the company is actively expanding its presence in the defence, marine and telecommunications infrastructure sectors, leveraging its precision engineering capabilities .

Although it largely supplies its domestic customers, the company also maintains an international presence through its export sales.

The company achieved a 103.47% increase in operational revenue, from ₹56.53 crores in FY22 to ₹115.03 crores in FY24. This growth was driven by increased capacity to meet growing demand from existing customers, acquisition of new customers and diversification into new sectors over the three recent years.

Profit after tax jumped 239.12% from ₹3.60 crores in FY22 to ₹12.21 crore in FY24, attributed to increased revenue, addition of new machines and improvement in operational efficiency, according to the company’s DRHP report.

Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the opinions of Mint. We advise investors to seek advice from certified experts before making any investment decisions.