OBSC Perfection Limited is coming up with an IPO with a fresh issue of 66,02,400 shares worth INR 66.02 crores. The company aims to fund the capital expenditure at existing facilities, meet the working capital requirement, and general corporate purposes.
OBSC Perfection Limited IPO – Important Dates
| OBSC Perfection Limited IPO Date | October 22, 2024 to October 24, 2024 |
| OBSC Perfection Limited IPO Listing Date | October 29, 2024 |
| OBSC Perfection Limited IPO Price | INR 95-100 per share |
| OBSC Perfection Limited IPO Lot Size | 1200 Shares |
| OBSC Perfection Limited IPO Total Issue Size | INR 66.02 crores |
| OBSC Perfection Limited IPO Basis of Allotment | October 25, 2024 |
| OBSC Perfection Limited IPO Initiation of Refunds | October 28, 2024 |
| OBSC Perfection Limited IPO Credit of Shares to Demat | October 28, 2024 |
| OBSC Perfection Limited IPO Issue Type | Book Built Issue IPO |
| OBSC Perfection Limited IPO Listing At | NSE SME |
Read more about OBSC Perfection Limited IPO GMP
OBSC Perfection Limited IPO – Company Profile
The company is a precision metal component manufacturer offering a diversified suite of precision engineering products which are high-quality engineered parts across end-user industries and geographies.
The company primarily caters to top original equipment manufacturers (“OEMs”) who ultimately supply various components and parts to top automotive manufacturing companies in India. In the non-automotive sector, it caters to manufacturers of the Defense, Marine & Telecommunication Infrastructure industries.
The company operates four strategically located manufacturing facilities with three of the manufacturing facilities including the principal manufacturing facilities at Pune, Maharashtra, a prominent auto hub i.e. Unit I (principal manufacturing facility), Unit II, Unit IV, and one at Chennai, Tamil Nadu- Unit III.
OBSC Perfection Ltd IPO Fundamental Analysis
OBSC Perfection has demonstrated a 19% revenue growth from FY2023 to FY2024, with FY2025 showing stable performance. Profitability doubled in FY2024, and current results suggest continued growth. Expenses and liabilities increased moderately, while equity and NAV improved, indicating financial strength, though rising liabilities warrant monitoring.
1. Revenue Performance
The company showed a revenue growth of around 19% from FY2023 to FY2024, indicating an upward trend in business activity. In the first five months of FY2025, the company has already generated close to half of FY2024’s revenue, indicating stable performance.
2. Expense Management
The company’s expenses increased by approximately 10% from FY2023 to FY2024, but they seem to be in line with revenue growth. For FY2025, expenses have remained controlled, amounting to just under half of FY2024’s total expenses.
3. Profitability
The company has more than doubled its profit from FY2023 to FY2024. The profit in the first five months of FY2025 is already close to 50% of FY2024’s total, indicating steady profitability.
EPS has improved significantly in FY2024, reflecting higher profitability per share. The non-annualised EPS for FY2025 suggests the company may maintain solid earnings growth.
4. Equity and NAV Growth
The steady increase in equity indicates the company is retaining earnings and improving its financial strength.
The rising NAV per share shows that the company’s assets per share are growing, a positive sign for long-term investors.
5. Return on Net Worth (RONW)
The company’s RONW improved substantially in FY2024, indicating efficient use of equity to generate profits. The non-annualised figure for FY2025 is still strong, showing sustained profitability.
6. Financial Health
Both assets and liabilities have grown, indicating expansion. However, liabilities have increased at a faster pace in FY2025, which could affect the company’s financial risk.
OBSC Perfection IPO Financial Analysis
| Particular | As of 31 March 2023 | As of 31 March 2024 | As of 31 August 2024(5 months) |
| Revenue (₹ in lakhs) | 9,635.85 | 11,503.03 | 5,652.60 |
| Equity (₹ in lakhs) | 1,785.89 | 3,007.10 | 3,610.15 |
| Expenses (₹ in lakhs) | 9,060.41 | 9,968.33 | 4,890.31 |
| Profit and Loss After Tax (₹ in lakhs) | 457.39 | 1,221.21 | 603.05 |
| Diluted EPS only (₹) | 2.56 | 6.84 | 3.38 |
| NAV per Equity Share (₹) | 10.01 | 16.85 | 20.22 |
| Return on Net Worth (RONW) (%) | 25.61 | 40.61 | 27.11 |
| Total Assets (in lakhs) | 6,916.01 | 8,650.59 | 11,066.37 |
| Total Liabilities (in lakhs) | 5,130.12 | 5,643.49 | 7,456.22 |
OBSC Perfection Limited IPO Peer Comparison
OBSC Perfection Limited has the lowest revenue at ₹11,503.03 lakhs with a strong RoNW of 40.61%, while Talbros Automotive has the highest revenue at ₹77,826.68 lakhs. RACL Geartech balances moderate RoNW (19.24%) with solid EPS (₹36.54).
| Company | Revenue from operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS- Basic & Diluted (₹) | RoNW (%) | NAV per share (₹) |
| OBSC Perfection Limited | 11,503.03 | 10 | NA | 6.84 | 40.61 | 16.85 |
| RACL Geartech Limited | 40,952.00 | 10 | 26.58 | 36.54 | 19.24 | 189.96 |
| Talbros Automotive Component Limited | 77,826.68 | 10 | 17.78 | 17.82 | 20.47 | 87.02 |
OBSC Perfection Ltd IPO Objective
The main objective of OBSC Perfection is to invest INR 30.59 crores for expanding Units III and IV, INR 16.66 crores for working capital needs, and the remaining funds for general corporate purposes, including operations, project development, and marketing.
- Funding Capital Expenditure: The company plans to invest in machinery to meet the expected increase in demand from the automotive and other industries. The company plans to utilise INR 30.59 crores for funding the expansion of Unit III and Unit IV.
- To meet working capital requirements: The business is working capital intensive as the major capital is invested in inventories and trade receivables. The Company will meet the requirement to the extent of INR 16.66 crores from the Net Proceeds of the Issue.
- General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
OBSC Perfection IPO Risks And Challenges
OBSC Perfection plans to utilize INR 30.59 crores for expanding Units III and IV, INR 16.66 crores to meet working capital requirements, and the remaining funds for general corporate purposes, including operations, project development, and marketing.
- The business is dependent on the performance of the automotive industry. Economic cyclicality coupled with reduced demand in these other industries, in India or globally, could adversely affect the business, results of operations, and financial condition.
- Almost 71% of the revenue comes from the west zone. Any adverse developments in this market could adversely affect the business.
- The company engages contract workers to carry out functions of the business operations. In the event of the non-availability of such contract workers at a reasonable cost, any adverse regulatory orders or any default on payments to them by the agencies could lead to disruption of the manufacturing facilities and business operations.
OBSC Perfection Ltd IPO – Industry & Market Potential
The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. Imports of Electrical Machinery in India increased to US$ 12.30 billion in FY24.
The Indian electrical equipment industry comprises of two broad segments, Generation equipment (boilers, turbines, generators) and Transmission & Distribution (T&D) and allied equipment like transformers, cables, transmission lines, etc. The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP. Incentives for capacity addition in power generation will further increase the demand for electrical machinery.
OBSC Perfection Limited IPO – Type of Offer
OBSC Perfection Limited is coming up with an IPO, offering 66,02,400 shares worth INR 66.02 crores. The company plans to use the funds for capital expenditure at existing facilities, meeting working capital requirements, and general corporate purposes.
OBSC Perfection IPO Offer Size
The offer size for OBSC Perfection Limited’s IPO is 66,02,400 shares worth INR 66.02 crores. The company plans to utilize the proceeds for capital expenditure at existing facilities, meeting working capital requirements, and general corporate purposes.
OBSC Perfection Limited IPO Allotment Structure
OBSC Perfection Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 3,33,600 shares are reserved for market makers. 64,500 shares are reserved for eligible employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 3,33,600 shares, are reserved for market makers.
How to apply for the OBSC Perfection IPO?
To apply for the OBSC Perfection Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the OBSC Perfection Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the OBSC Perfection Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check OBSC Perfection IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the OBSC Perfection Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the OBSC Perfection Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the OBSC Perfection Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the OBSC Perfection Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official website of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
OBSC Perfection Ltd IPO Offer Registrar
The registrar for the OBSC Perfection Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri (East), Mumbai –400 09
Email: [email protected]
Website: www.bigshareonline.com
OBSC Perfection IPO – FAQs
1. What is the allotment date of the OBSC Perfection IPO?
The allotment date of the OBSC Perfection Limited IPO is October 25, 2024.
2. What is the price band of the OBSC Perfection IPO?
The price band of the issue is INR 95-100 per share.
3. What is the size of the OBSC Perfection IPO?
The offer size for OBSC Perfection Limited’s IPO is 66,02,400 shares worth INR 66.02 crores. The company plans to utilize the proceeds for capital expenditure at existing facilities, meeting working capital requirements, and general corporate purposes.
4. What is the listing date of the OBSC Perfection IPO?
The listing date of OBSC Perfection Limited’s IPO is October 29, 2024.
