Om Freight Forwarders IPO: A Comprehensive Guide for Indian Investors
Om Freight Forwarders Ltd.’s initial public offering (IPO) has opened on its final day subscription on Wednesday. The IPO, which aims to raise Rs 122.31 crore, has garnered significant interest from non-institutional investors on its second day. In this article, we will delve into the details of the Om Freight Forwarders IPO, including its subscription status, grey market premium, and listing details.
Subscription Status: A Breakdown of the Numbers
The Om Freight Forwarders IPO was subscribed 2.23 times led by non-institutional investors on its second day on Tuesday. Meanwhile, the IPO was subscribed 1.39 times on its first day on Monday. As of 11:21 a.m. on Wednesday, the IPO was subscribed 2.33 times.
The breakdown of the subscription status is as follows:
- Qualified institutional buyers (QIB): 3.95 times
- Non-Institutional investors (NII): 4.78 times
- Retail investors: 1.06 times
- Employee reserved: 0.29 times
IPO Details: Understanding the Offer
The Rs 122.31-crore IPO is a book-built issue that comprises a fresh issue of 18 lakh shares to raise Rs 24.44 crore and an offer-for-sale component of 73 lakh shares worth Rs 97.88 crore.
The IPO’s price band has been set between Rs 128 and Rs 135 per share. The lot size for retail investors is 111 shares, requiring a minimum investment of Rs 14,985. For SNIIs, the lot size is 14 lots, or 1,554 shares, requiring Rs 2,09,790, while BNIIs can apply for 67 lots, or 7,437 shares, amounting to Rs 10,03,995.
Listing Details: What to Expect
The IPO is scheduled to close on October 3, with the tentative allotment expected on October 6. Refunds to unsuccessful applicants are likely to begin on October 7, the same day the shares are expected to be credited to successful investors’ Demat accounts.
The IPO is tentatively set to list on the BSE and NSE on October 8.
Grey Market Premium: A Speculative Indicator
The latest grey market premium of Om Freight Forwarders is Rs 3 as of 11:00 a.m. according to Investorgain.com. The stock’s estimated listing price, as per the GMP, is Rs 138, implying a potential gain of 2.22% over the IPO price of Rs 135.
Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.
Company Profile: Understanding Om Freight Forwarders
Om Freight Forwarders Ltd. is a Mumbai-based logistics firm with more than 40 years of experience. The company has expanded its operations across five continents, reaching over 700 locations worldwide.
The company focuses on technology-driven solutions, providing paper-free documentation, GPS tracking, and real-time shipment monitoring. Its services span international freight forwarding, customs clearance, vessel agency operations, transportation, warehousing, and distribution.
Utilization of IPO Proceeds: A Look at the Company’s Plans
The company plans to utilize the net proceeds from its IPO primarily to fund capital expenditure, including the acquisition of commercial vehicles and heavy equipment. The remaining funds will be allocated for general corporate purposes.
In conclusion, the Om Freight Forwarders IPO has garnered significant interest from non-institutional investors on its second day. With a strong company profile and a growing logistics sector, the IPO is likely to attract attention from retail investors as well. However, it is essential to do your own research and consider your investment goals and risk tolerance before investing in the IPO.
