OSBC Perfection IPO

OBSC Perfection Ltd

₹1,14,000 /1200 sharesMinimum Investment

OSBC Perfection IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
--₹100.00₹110.00₹10.00 (10.00%)

OSBC Perfection IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
22 Oct ‘24 - 24 Oct ‘24₹1,14,0001,200₹95 - ₹100
Issue SizeIPO Doc
66.02Cr
RHP PDF

Subscription rate

As of 24 Oct'24, 04:00 PM
Qualified Institutional Buyers0.00x
Non-Institutional Investor0.00x
Retail Individual Investor0.00x
Total9.33x

About OSBC Perfection

OBSC Perfection is a manufacturer of precision metal components, serving primarily as a supplier to original equipment manufacturers (OEMs), who deliver parts to India's automotive industry. The company also provides products to sectors including defence, marine, and telecommunications infrastructure. The company operates from four manufacturing facilities, three of which are located in Pune, Maharashtra, and one in Chennai, Tamil Nadu. The company’s product portfolio consists of 24 items, including cut blanks, shafts, spline shafts, torsion rods, piston rods, rack bars (semi-finished), pinions, drive shafts, gear shifters, cable end fittings, sensor bosses, sleeves, push plates, hubs, and various housing components made from brass and aluminium. The company also produces fork bolts, fasteners, connectors, ball pins, ball pin housings, flanges, male-female rings, and dozing adapters.;
Founded in
2017
Managing director
Mr. Saksham Leekha
Parent organisation
OBSC Perfection Ltd

Strengths & Financials of OSBC Perfection

Strengths
Risks
OBSC Perfection operates from two auto hubs in India—Pune and Chennai. The company claims that this strategic locational advantage enables quicker communication, faster order fulfilment, and more efficient problem resolution during production.
The company claims to benefit from being co-located with Omega Bright Steel & Components Private Limited, a related promoter group entity, and its primary supplier of high- and low-carbon steel bright bars. This arrangement ensures a consistent supply of high-quality raw materials, which are crucial for manufacturing.
OBSC Perfection is ISO 9001:2015 certified for quality management systems in the manufacturing of precision machined components, such as pistol rods, shafts, connectors, cable end fittings, studs, bushes, and rings. Additionally, the company has received the IATF Standard 16949:2016 (quality management standard for the automotive industry) certification for the same range of products.
The company has recorded a consistent rise in revenue from operations and profit after tax (PAT) over the last few years. Revenue from operations increased from Rs 56.53 crore in FY22 to Rs 96.36 crore in FY23 to Rs 115.03 crore in FY24, while PAT increased from Rs 3.60 crore in FY22 to Rs 4.57 crore in FY23 to Rs 12.21 crore in FY24.
OBSC Perfection's revenue is dependent on a few key customers. The company’s top 10 contributed Rs 75.39 crore (65.54%), Rs 58.72 crore (60.94%), and Rs 34.54 crore (61.10%) to the revenue from operations in FY24, FY23, and FY22, respectively. Any loss of these major customers or a reduction in business from them could adversely affect the company’s operations and finances.
The company's revenue is closely tied to the automotive sector, which contributed Rs 106.99 crore (93.01%), Rs 87.46 crore (90.77%), and Rs 46.48 crore (82.22%) to the total revenue from operations in FY24, FY23, and FY22, respectively. Any economic fluctuations and decreased demand in this sector, both in India and globally, can negatively impact the company’s operations and financial performance.
OBSC Perfection's sales are predominantly domestic. Domestic sales accounted for Rs 95.58 crore (83.09%), Rs 83.60 crore (86.76%), and Rs 46.57 crore (82.38%) of the total revenue from operations in FY24, FY23, and FY22, respectively. Any adverse developments in the domestic market could be detrimental to the company’s financial performance and operations.
A significant portion of the company's domestic sales come from the west and south zones. The west zone contributed 73.01%, 74.61%, and 86.03%, while the south zone contributed 22.59%, 19.02%, and 9.10% to the total revenue from operations in FY24, FY23, and FY22, respectively. Any sudden changes in the business environment of these zones could adversely affect the company’s sales and operations.
The company, its directors, promoters, and a group company are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of September 30, 2024, the company had outstanding borrowings totalling Rs 50.56 crore. Any inability to service or repay these loans could adversely affect the company’s financial standing.

OSBC Perfection Financials

*All values are in Rs. Cr
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Application Details of OSBC Perfection IPO

Apply asPrice bandApply Range
Regular95 - 100₹2 - 5 Lakh
High Networth Individual95 - 100₹2 - 5 Lakh
For OSBC Perfection IPO, eligible investors can apply as Regular.