Om Power Transmission IPO Closes: Are Strong Financials and Sector Tailwinds Enough for a Long-Term Buy?

Today marks the final bidding day for the Om Power Transmission IPO. The issue, which opened on April 9, saw significant momentum build across its two days of bidding. The final subscription level indicated sustained investor interest, with the overall IPO being subscribed 71 percent by the second day.

The strong uptake was visible across investor segments. Qualified Institutional Buyers (QIBs) remained highly active, subscribing the portion 1.18 times. Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) also showed marked improvement in traction, booking 0.38 times and 0.58 times, respectively.

The IPO allocation structure is designed to cater to a diverse investor base, earmarking up to 50 percent for QIBs, at least 15 percent for NIIs, and a minimum of 35 percent for retail investors.

Anchor Investment & Market Valuation​

Before the retail bidding began, Om Power Transmission successfully raised capital from anchor investors. Key institutional players included Mauritius-based Craft Emerging Market Fund PCC (via Elite and Citadel Capital Fund) picking up shares worth over ₹29 crore. Morgan Stanley Asia (Singapore) also contributed significantly, acquiring shares valued at ₹10 crore.

The market sentiment surrounding the issue has been positive. The Grey Market Premium (GMP) stood at ₹2, according to latest data. Considering the upper price band of ₹175, this suggests an estimated listing price of around ₹177, projecting a potential listing gain of about 1.14 percent per share.

Om Power Transmission's Operational Strength​

Om Power Transmission operates in the crucial engineering, procurement, and construction (EPC) segment, specializing in power transmission infrastructure. The company brings over 14 years of experience in executing large-scale power projects.

Its core expertise lies in providing turnkey solutions for High Voltage (HV) and Extra High Voltage (EHV) transmission lines, substations, and underground cabling projects. Beyond construction, the company also offers comprehensive Operation and Maintenance (O&M) services.

Deep Dive into Financial Performance and Sector Tailwinds​

Analysts point to a fundamentally robust business setup. SBI Securities highlighted the company's proven capabilities in executing complex power infrastructure projects.

Speaking to the financial health, SBI Securities noted a strong historical growth trajectory. The company has reported a Compound Annual Growth Rate (CAGR) of 52% for Revenue, 73% for EBITDA, and 88% for PAT between FY23 and FY25.

Crucially, the company is positioned to capitalize on massive sector tailwinds. India's power generation and transmission market is expected to expand from USD 125 billion in FY24 to a massive USD 280 billion by FY30P, growing at a CAGR of 14.4%.

Furthermore, the company plans to partially repay its borrowings by ₹25 crore. This move is set to aid in savings of finance costs, thereby boosting overall profitability.

Expert Analysis: A View on Subscribing to the IPO​

Following the strong subscription figures, SBI Securities has given a positive rating to the public issue. The firm recommends that investors SUBSCRIBE to the issue, particularly for a long-term investment horizon.

Regarding valuation, the issue is valued at a P/E of 27.1x based on FY25 earnings and 19.2x based on annualized 9MFY26 earnings, using the upper price band of ₹175.

For comparable context, the listed peers include Rajesh Power Services Ltd (P/E of 16.38), Advait Energy Transitions Ltd (P/E of 57.52), and Viviana Power Tech Ltd (P/E of 25.15).

The IPO allotment is anticipated to be finalized on April 15, with refunds expected on April 16. The shares are tentatively scheduled to list on the BSE and NSE on April 17.