Om Power Transmission
IPO Size: Rs. 150 cr
- Fresh Issue of Rs. 133 cr for (i) working cap Rs. 55 cr (ii) debt repayment Rs. 25 cr (iii) machinery purchase Rs. 11 cr
- Offer for Sale (OFS) of Rs. 18 cr by promoter (92% stake to drop to 69% post IPO)
Price band: Rs. 166-175 per share
M cap: Rs. 599 cr, implying 25% dilution
IPO Date: Thu 9th Apr to Mon 13th Apr 2026, Listing Fri 17th Apr 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Gujarat-based Power Transmission EPC Company
Om Power Transmission is a 14 year old company executing high-voltage (HV) and extra-high voltage (EHV) transmission lines, substations and underground cabling projects on a turnkey basis. Its engineering, procurement and construction (EPC) capabilities extend to transmission lines ranging from 11 kilovolts (kV) to 400 kV and substations up to 220 kV.
Growing Financials
FY25 revenue stood at Rs. 279 cr with Rs. 36 cr EBITDA (12.7% EBITDA) and Rs. 22 cr PAT (8% net margin). 9MFY26 financial performance matches FY25, with revenue at Rs. 275 cr, EBITDA at Rs. 34 cr and PAT at Rs. 23 cr, implying healthy growth. EPS for 9MFY26 and FY25 stood at Rs. 9.2 and Rs. 9.0 respectively.
Gross debt stands at Rs. 38.5 cr, with net debt at Rs. 35 cr. Post repayment from IPO proceeds, net debt will be negligible at Rs. 10 cr, on expanded networth of Rs. 250 cr. Since 80%+ business is from PSU clients, need for working capital is high, with receivables outstanding at 4+ months. Despite this, RoE remains healthy at 26%.
Concentrated Growth
Post order win of Rs. 563 cr in 9MFY26, order book rose to Rs. 745 cr, as of 31.12.25, implying book-to-bill of 2x, on trailing twelve month basis. Q4 generally accounts for 38-40% of company’s historic annual turnover, inline with the sector, providing healthy growth visibility.
But projects concentrated in Gujarat alone, with largest customer accounting for half the business, as Om Power has limited scale of operations - highlighting both client and geographic concentration risk.
Healthy Pricing
Mcap of Rs. 600 cr and a similar Enterprise Value (EV) of Rs. 610 cr implies a PE multiple of 14x on one-year forward, based on estimated FY27E EPS of Rs. 14 (after interest cost savings due to loan repayment), while EV/EBITDA multiple is about 9x, on expected EBITDA of Rs. 60 cr in FY27E. While this is a nano cap stock with concentrated revenue, healthy growth, low debt, strong margin and return profile and power transmission sector tailwinds make the IPO valuation attractive.
Om Power had raised Rs. 24 cr via a private placement in Sep 2025 at Rs. 116 per share. The 50% premium in IPO price in 7 months appears like a tall ask, but valuation is inline with listed peers. Vikran Engineering with Rs. 1,000 cr topline and 7.5% net margin is trading at a PE of 18x, while Skipper Ltd with 3% net margin on a larger topline of Rs. 5,000 cr is trading at a PE of 20x.
