Om Power Transmission Files IPO Papers; Fresh Issue of 90 Lakh Shares, OFS of 10 Lakh

Mumbai, 1 October 2025: Om Power Transmission Limited (OPTL), an engineering, procurement and construction (EPC) company specialising in power transmission, has filed its Draft Red Herring Prospectus (DRHP) for a proposed initial public offering (IPO). The offer comprises a Fresh Issue of up to 90 lakh equity shares and an Offer for Sale (OFS) of up to 10 lakh shares by promoters, with the company aiming to list on both NSE and BSE.

Om Power IPO Fresh Issue of 90 Lakh Shares to Support Expansion and Debt Repayment

The IPO structure includes up to 1 crore shares, with a face value of ₹10 per share. While the price band, bidding dates and lot size remain undisclosed, the share allocation framework follows market norms with up to 50% reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Individual Investors (RIIs).

The proceeds from the fresh issue are earmarked to strengthen operational capacity. ₹10.86 crore will be allocated for machinery purchases, ₹25.62 crore towards repayment of borrowings, and ₹55 crore for working capital requirements, with the remainder directed towards general corporate purposes.

Om Power IPO Revenue Growth of 53% in FY25 Reflects Strong Execution Momentum

OPTL has posted steady growth, backed by its execution track record. Revenue from operations rose 53% year-on-year to ₹279.43 crore in FY25, compared with ₹182.76 crore in FY24 and ₹120.23 crore in FY23. Profitability also expanded, with Profit After Tax (PAT) at ₹22.08 crore in FY25, up from ₹12.04 crore in FY24.

The company’s Return on Net Worth (RoNW) stood at 30.40% in FY25, underpinned by a rising net worth of ₹72.65 crore. With total borrowings of ₹18.90 crore, the company maintains a manageable leverage profile while scaling operations.

Om Power IPO Order Book of ₹776.19 Crore Signals Demand, But Government Dependence Persists

As of 31 August 2025, OPTL’s order book stood at ₹776.19 crore, reflecting healthy demand from state utilities and Public Sector Undertakings (PSUs). The company has executed more than 1,000 circuit-km of transmission lines and 11 substations, with capabilities spanning 11 kV to 400 kV lines and up to 220 kV substations.

However, a significant share of its revenue is derived from government contracts. This concentration increases exposure to payment delays and policy-related uncertainties, while geographic dependence on Gujarat continues to be a limiting factor.

Om Power IPO Promoter Group Offloading 10 Lakh Shares in Offer for Sale

The OFS component will see promoters partially dilute their stake. Kalpesh Dhanjibhai Patel and Kanubhai Patel will each sell up to 3.5 lakh shares, while Vasantkumar Narayanbhai Patel will divest up to 3 lakh shares. The weighted average cost of acquisition for the promoters stands at ₹0.24 per share, highlighting the scale of value creation since inception.

Om Power IPO Key Watchpoints: Liquidity Risks, Execution Challenges and Regional Exposure

Despite strong growth, OPTL faces risks linked to its working capital cycle, including high receivables and guarantee obligations that may pressure liquidity. Execution hurdles such as land acquisition delays, right-of-way issues and raw material cost fluctuations could also impact margins. Additionally, over-reliance on government and Gujarat-based contracts may limit diversification opportunities in the near term.

Om Power Transmission’s IPO filing highlights its ambitions to strengthen operations, reduce debt, and secure capital for expansion amid rising demand in India’s transmission sector. With a robust order book, improving margins, and promoter dilution, the issue represents a significant step for the EPC firm as it prepares to tap public markets. Final IPO details such as price band, subscription dates, and listing schedule are expected in the coming weeks.

REF: https://nsearchives.nseindia.com/corporate/Registration_01102025064815_OM_POWER_TRANSMISSION_LIMITED_DRHP.pdf

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