Omfurn India FPO opens to tepid response, issue booked nearly 17% on day 1: Check offer size, price band and other details

Omfurn India Limited FPO (follow-on public offer), a book build issue of ₹27 crore, opened for subscription on Wednesday, March 20. The public offering, entirely a fresh issue of 36 lakh shares, will close on Friday, March 22.

Omfurn India Limited, which operates in the pre-finished wooden doors and modular furniture space, will list FPO shares on the NSE SME platform.

Omfurn India FPO was booked nearly 17% till 2:20 pm on the first day of subscription, as per the NSE data. The FPO received bids for a total of 4,77,600 shares compared to 28,84,800 shares on offer for public investors.

The FPO received negligible demand in the NIIs category with biddings only for 24,000 shares. The retail segment was booked 38 times.

Under the FPO, the company has reserved 1,173,600 shares or 32.60% of the issue size for qualified institutional buyers (QIBs) and 5,13,600 shares, or 14.27%, of the offer for non-institutional investors (NIIs). The company has set aside 1,197,600 shares, or 33.27%, for retail investors’ category.

The company raised ₹4.01 crore from anchor investors on Tuesday, March 19, with allocations of 5,35,200 shares. It has also reserved 5% of the issue, or 1,80,000 shares, for the FPO's market maker, Gretex Share Broking.

Gretex Corporate Services Limited has been appointed as the book-running lead manager for the Omfurn India FPO. Bigshare Services is the registrar to the public issue.

Omfurn India Limited FPO price band and minimum investment

The price band for the Omfurn India FPO is fixed at ₹71 to ₹75 per share. The minimum lot size is 2,400 shares for an applicant. With this, retail investors will need to invest a minimum amount of ₹1,80,000. For High Net Worth Individuals (HNI), the minimum lot size investment is 2 lots or 4,800 shares, amounting to ₹3,60,000.

Omfurn India FPO share allotment is expected to be finalised on March 26.

Omfurn India FPO money refunds and crediting of shares

The company will start refunding money to those who do not receive shares under the FPO on March 27. Omfurn India FPO shares will be credited to the demat accounts of successful applicants on the same day.

The company will list shares on the NSE SME platform, with the tentative listing date set for March 28.

Rajendra Chitbahal Vishwakarma, Narendra Chitbahal Vishwakarma, Mahendra Chitbahal Vishwakarma, Prashant Rajendra Vishwakarma, and Parmanand Mahendra Vishwakarma are the promoters of the company. Their shareholding post FPO will be reduced to 50.96% from the existing 73.40%.

OmFurn India Limited FPO objective

OmFurn India Limited will use the proceeds from the follow-on public offering for various strategic purposes. It will use funds to meet capital expenditure requirements like installing plants and machinery.

The company will also spend funds towards meeting expenses related to civil, electric, and fabrication work. A portion of the capital will be used to repay existing debts, either in full or in part.

The raised funds will be used for general corporate purposes in a bid to support the overall growth and expansion ambitions of OmFurn India Limited.

About Omfurn India Ltd

Omfurn India was listed on the NSE SME in 2017. Started in 1997, the company is a leading manufacturer of pre-finished wooden doors and modular furniture in the country. The company has expertise in crafting an extensive assortment of wooden doors and furniture. Its services span designing modular kitchens, wardrobes, vanities, and contemporary office furniture.

Omfurn India is also executing turnkey interior projects for various clients, including hotels, residences, shopping malls, hospitals, offices, and IT parks. It also provides pre-finished and fire-rated doors.

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