Om Freight Forwarders IPO Oversubscribed 2.56 Times on Final Day
Om Freight Forwarders Ltd.'s Rs 122.31 crore IPO has been oversubscribed 2.56 times on its final day. The issue, priced between Rs 128 and Rs 135 per share, includes a fresh issue of 18 lakh shares and an offer-for-sale of 73 lakh shares. The grey market premium stands at Rs 7, indicating a potential listing price of Rs 142. The IPO closes on October 3, with share allotment expected on October 6 and listing scheduled for October 8. The company plans to use the funds for capital expenditure, including acquisition of commercial vehicles and heavy equipment.
*this image is generated using AI for illustrative purposes only.
Om Freight Forwarders Ltd.'s Initial Public Offering (IPO) has garnered significant investor interest, achieving an oversubscription of 2.56 times on its final day. The Rs 122.31 crore issue, which opened on September 29, is set to close on October 3.
Subscription Details
Investors showed strong appetite for the shares, bidding for 2,02,66,935 shares against the 79,16,945 shares on offer. This robust demand underscores the market's positive sentiment towards the logistics sector.
IPO Structure and Pricing
The IPO comprises two components:
- A fresh issue of 18 lakh shares, amounting to Rs 24.44 crore
- An offer-for-sale of 73 lakh shares, worth Rs 97.88 crore
The company has set the price band for the issue between Rs 128 and Rs 135 per share.
Grey Market Premium and Expected Listing
The grey market premium (GMP) for Om Freight Forwarders' shares remains steady at Rs 7. This indicates:
- An estimated listing price of Rs 142
- Potential gains of 5.19% for investors
Key Dates
| Event | Date |
|---|---|
| IPO Closing | October 3, 2023 |
| Share Allotment | October 6, 2023 (Expected) |
| Listing Date | October 8, 2023 (Scheduled) |
About Om Freight Forwarders
Founded in 1995, Om Freight Forwarders is an ISO-certified logistics company. The firm specializes in:
- International freight forwarding
- Customs clearance
- Warehousing services
Utilization of IPO Proceeds
The company plans to use the funds raised for capital expenditure, including:
- Acquisition of commercial vehicles
- Purchase of heavy equipment
This strategic allocation of funds is aimed at enhancing the company's operational capabilities and expanding its service offerings in the competitive logistics sector.
Investor Outlook
The oversubscription of the IPO suggests a positive investor sentiment towards Om Freight Forwarders. However, it's important to note that market conditions and company performance post-listing will ultimately determine the stock's performance.
As the logistics sector continues to evolve, especially in the wake of e-commerce growth and supply chain transformations, companies like Om Freight Forwarders are positioned to play a crucial role in India's economic landscape.
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