OBSC Perfection hits 5% upper circuit after making a decent debut at 10% premium to the IPO price

Shares of small and medium enterprise (SME) OBSC Perfection Limited made a decent trading debut on Tuesday, October 29, listing at a 10% premium on the NSE Emerge platform.

OBSC Perfection stock opened the session at ₹110 per share, compared to its initial public offering (IPO) price of ₹100 apiece. Within minutes of the session's opening, the share price rose another 5% to hit the upper circuit limit at ₹115.5 apiece.

As the minimum bid quantity to apply for the OBSC Perfection IPO was 1,200 shares, successful bidders who were allotted shares in the primary issue were sitting on listing gains of ₹12,000 (₹10 x 1,200) per lot after the stock started trading on exchanges.

As many as 21.25 lakh company shares were traded on the NSE SME platform, with a total trading value reaching ₹23.75 crore. OBSC Perfection's market capitalisation stood at ₹282.43 crore.

OBSC Perfection IPO details

The ₹66.02-crore OBSC Perfection IPO was open for subscription from October 22 till October 24. During the three-day bidding period, the issue got oversubscribed by 16.56 times. The company received bids for a total of 7.27 crore shares compared with 43.9 lakh shares on offer.

The portion reserved for non-institutional investors (NII) was overbid by almost 26 times, while the retail investors’ segment was subscribed 16.20 times. The qualified institutional buyers’ (QIB) category, meanwhile, was overbooked by 10.20 times.

The OBSC Perfection IPO was a 100% book-built issue made up entirely of a fresh issuance of 66.02 lakh shares, with no offer-for-sale (OFS) component.

Price band for the OBSC Perfection IPO was set at ₹95 to ₹100 per share, with the lot size for an application being 1,200 shares.

Before the launch of the IPO, OBSC Perfection also raised ₹18.79 crore via its anchor investor round. The company's board of directors, in its meeting held on October 21, finalised the allocation of 18.79 lakh equity shares to a total of 10 anchor Investors at an allocation price of ₹100 per share.

The company proposed to use the net proceeds from the issue to fund capital expenditures, such as purchasing machinery for the existing manufacturing facilities in Thiruvallur (Tamil Nadu) and Pune (Maharashtra).

Part of the proceeds would also be used to fund the company's working capital requirements and for general corporate purposes.

About OBSC Perfection

Established in 2017, OBSC Perfection is a precision metal components manufacturer. Its wide range of products includes high-quality engineered parts that are used by various industries.

OBSC Perfection caters to original equipment manufacturers (OEMs) who supply various components and parts to leading automobile manufacturers in India. In the non-automotive sector, the company supplies manufacturers in the defence, marine, and telecom infrastructure sectors.

OBSC Perfection has four manufacturing facilities, three of which are located in Pune and one in Chennai.