OBSC Perfection IPO: Here are 10 Key things you need to know

1. IPO Launch and Details OBSC Perfection IPO will be open for subscription from October 22, 2024, to October 24, 2024. This NSE SME IPO aims to raise ₹66.02 crores through a 100% fresh issue of equity shares with a face value of ₹10 each. The price band is set between ₹95 to ₹100 per share, and investors can bid in market lots of 1,200 shares. The allocation is structured with 35% for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High-Net-Worth Individuals (HNIs).

2. About OBSC Perfection Limited Founded in 2017, OBSC Perfection Limited is known for manufacturing precision metal components. It has become a key supplier of high-quality engineered parts across various industries. Their in-house capabilities in machining, turning, fabrication, and assembly allow them to deliver comprehensive solutions to clients.

3. Product Range The company produces a variety of precision components such as cut blanks, shafts, spline shafts, torsion rods, piston rods, rack bars, pinions, and gear shifters. It also manufactures fasteners, connectors, ball pins, housing parts, flanges, and other specialized components.

4. Financial Overview OBSC Perfection has shown solid financial performance over the years. In FY2024, the company reported a revenue of ₹116.11 crores, with a profit after tax of ₹12.21 crores. This reflects a significant improvement from FY2023’s revenue of ₹96.91 crores and profit of ₹4.57 crores.

5. Financial Ratios and Valuation The company’s financial health is highlighted by an ROE of 40.61% and a PAT margin of 10.62% for FY2024. With an EPS of ₹6.84 and a debt-to-equity ratio of 1.38, OBSC Perfection has shown efficient capital use and profitability.

6. Objectives of the IPO The primary objectives for raising funds through the IPO include:

• Purchasing machinery for expanding existing manufacturing facilities (Unit III and Unit IV).
• Meeting working capital requirements.
• Supporting general corporate purposes to enhance business operations.

7. IPO Timeline and Key Dates

• Open Date: October 22, 2024
• Close Date: October 24, 2024
• Allotment Basis: October 25, 2024
• Refunds: October 28, 2024
• Demat Credit: October 28, 2024
• Listing Date: October 29, 2024

8. How to Apply for the IPO Investors can apply for OBSC Perfection IPO using ASBA through online banking or offline IPO forms available on the NSE website. Applications can also be made through UPI-based systems via stockbrokers, ensuring a seamless and efficient process.

9. Peer Comparison OBSC Perfection competes with established players like RACL Geartech Limited and Talbros Automotive Components Limited. While RACL has an EPS of ₹36.54, OBSC’s competitive advantage lies in its diverse product range and strategic focus on precision engineering.

10. Company Promoters The promoters of OBSC Perfection Limited include Saksham Leekha, Ashwani Leekha, Sanjeev Verma, and others. The company’s growth has been driven by a dedicated team and strategic partnerships with entities like Omega Bright Steel.

Conclusion OBSC Perfection IPO presents an opportunity for investors looking to invest in a growing precision engineering company with a robust business model and a proven track record. With strategic fund allocation for expansion and operational enhancement, the company is poised to capture market growth effectively.