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OBSC Perfection Ltd

OBSC Perfection Ltd IPO

Status: Closed

Overview

IPO date

22 Oct 2024 to 24 Oct 2024

Face value

₹ 10 per share

Price

₹ 95 to ₹100 per share

Issue Size

6,602,400 shares
(aggregating up to ₹ 66.02 Cr)

Allotment Date

25 Oct 2024

Listing at

NSE

Issue type

Book Building - SME

Sector

Auto Ancillaries

Objectives of OBSC Perfection Ltd IPO

OBSC Perfection Ltd IPO Strategy

About OBSC Perfection Ltd

OBSC Perfection Limited was originally incorporated as 'OBSC Perfection Private Limited' on March 17, 2017, as a Private Limited Company pursuant to Certificate of Incorporation issued by RoC. The status of Company converted into a Public Limited and Company name was changed to 'OBSC Perfection Limited' dated June 28, 2024 vide Fresh Certificate of Incorporation issued by Registrar of Companies, Central Registration Centre. The Company is a precision metal component manufacturer offering a diversified suite of precision engineering products which are high-quality engineered parts across end-user industries and geographies. It primarily cater to top original equipment manufacturers who ultimately supply various components and parts to top automotive manufacturing companies of India. In non-automotive sector, it cater to manufacturers of Defense, Marine & Telecommunication Infrastructure industries. Further, the Company manufacture a wide range of precision metal components including cut blanks, shafts / spline shafts, torsion rods, piston rods, rack bar semi-finished, pinion, drive shafts, gear shifter, cable end fittings, sensor boss, sleeves, push plate, hubs, housing - brass and aluminium, fork bolt, fasteners, connectors, ball pin, ball pin housing, flange, male female ring, dozing adapter, housing for a diversified base of customers. At present, their core expertise lies in serving the automotive industry i.e. supplying OEMs, however, the Company is actively expanding the reach beyond automotive, to develop a strong presence in defense, marine, and telecommunication infrastructure sectors. The Company started production from 1st Manufacturing Facility in Pune with an annual installed capacity of 11.50 lakh units in 2020. In 2022, it commenced operations from Unit II for Investment Casting in Pune with an Annual capacity of 600 MT, again started operations from 3rd Manufacturing Facility for machining in Chennai from OEM and Tier I for South Market in 2023. The Company has expanded business by setting up new manufacturing Unit IV at Chakan in Pune, Maharashtra in 2024. The Company is proposing a Public Issue of 69,42,000 Fresh Issue Equity Shares.

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Strengths vs Risks of OBSC Perfection Ltd

Know the pros & cons

Strengths

Manufacturing facilities situated at two of the most prominent auto hubs of India.
Strategic advantage through streamlined supply chain with adjacent raw material supplier.
Qualified employee base and proven management team.
Consistent financial performance.

Risks

Its business largely depends upon the company's top 10 customers which contributed 70.10%, 64.66% and 66.34% in the Fiscal 2024, 2023 and 2022. The loss of any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
Its business is dependent on the performance of the automotive industry. Economic cyclicality coupled with reduced demand in these other industries, in India or globally, could adversely affect its business, results of operations and financial condition.
The Company is dependent on a domestic market for its sales and any downturn in it could reduce the company sales.
Its business and profitability are substantially dependent on the availability and cost of its raw materials and any disruption to the timely and adequate supply or volatility in the prices of raw materials may adversely impact its business, results of operations, cash flows and financial condition.
The company does not have long-term agreements with its suppliers for raw materials and an inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on its business, results of operations, financial condition and cash flows.
Its three manufacturing facilities are located in Pune, Maharashtra and Thiruvallur, Tamilnadu which exposes its operations to potential risks arising from local and regional factors such as adverse social and political events, weather conditions and natural disasters.
A significant portion of its domestic sales are derived from the West zone and South zone, any adverse developments in this market could adversely affect its business.
Its may faces several risks associated with the proposed expansion of its manufacturing units, which could hamper the company growth, prospects, cash flow its business and financial condition.
Its Restated Financial Statements are Prepared and Signed by the Peer Review Auditors who is not Statutory Auditors of the Company as required under the provisions of ICDR.
The company has significant working capital requirements for its smooth day to day operations of business and discontinuance or its inability to acquire adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability and growth prospects.
The company Operate its Registered Office and Manufacturing Facilities that are held by it on leasehold basis. In the event the company lose or are unable to renew such leasehold rights, its business, results of operations, financial condition, cash flows and prospects may be adversely affected.
Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders for such capital expenditure machinery.
Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.
The company requires several approvals, licenses, registrations and permits for its business and are required to comply with certain rules, regulations and conditions to operate its business and failure to obtain, retain or renew such approvals and licences in a timely manner or to comply with the requisite rules, regulations and conditions may adversely affect its operations.
If the company fail to manage its growth effectively, its may be unable to execute the company business plan or maintain high levels of service and satisfaction, and its business, results of operations, cash flows and financial condition could be adversely affected.
The Company does not have any documentary evidence for the past Experience of some individual promoters.
Its Promoters have extended personal guarantee in connection with some of its debt facilities to the company and one of its promoter group entity. There can be no assurance that such personal guarantee will be continued to be provided by its Promoters in future or can be called at any time, affecting the financial arrangements.
The shortage or non-availability of power may adversely affect its business, result of operations, financial conditions and cash flows.
The Company had negative cash flows during certain fiscal years in relation to its operating, investing and financing activities. Sustained negative cash flows in the future would adversely affect its results of operations and financial condition.
There have been some instances of incorrect filings with the Registrar of Companies and other noncompliances under the Companies Act in the past which may attract penalties.
The company presently does not own the trademark or logo under which its currently operate and if third parties infringe the trademark, logo and intellectual property that the company use, its business and reputation would be adversely affected.
Its operations are labour intensive, and the company manufacturing operations may be subject to unionization, work stoppages or increased labour costs, which could adversely affect its business and results of operations.
Its operations are subject to environmental and health and safety laws and other government regulations which could result in increased liabilities and increased capital expenditures.
The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with its Shareholders.
Conflict of interest may arise as its Promoter group entities and Group entities are authorized to carry on similar line of business as the Company which may lead to real or potential conflicts of interest for its Promoters or Directors.
The company has outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
The average cost of acquisition of Equity Shares for its Promoters may be lower than the Issue Price.
The company has incurred borrowings from commercial banks and any non-compliance with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition.
Certain unsecured loans have been availed by it which may be recalled by lenders.
The company operates in a competitive and fragmented industry with low barriers to entry and may be unable to compete with a range of unorganized sector.
The company is dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products and any failure to maintain a continuous supply of raw materials or to deliver its products to the company customers in an efficient and reliable manner could have a material and adverse effect on its business, financial condition and results of operations.
The company engage contract workers for carrying out functions of its business operations. In the event of non-availability of such contract workers at reasonable cost, any adverse regulatory orders or any default on payments to them by the agencies could lead to disruption of the manufacturing facilities and its business operations.
Its overall margins may fluctuate as a result of the product manufactured by the company.
Unplanned slowdowns or shutdowns of its manufacturing operations could have an adverse effect on its business, results of operations, financial condition, cash flows and future prospects.
Its may be subject to significant risks and hazards when operating and maintaining its Manufacturing Facilities, for which the company insurance coverage might not be adequate.
The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.
Significant failures or disruption of its information technology systems could adversely impact its business, results of operations and financial condition.
The company has not independently verified data from the industry and related data contained in this Draft Red Herring Prospectus.
Its Promoters will continue to retain significant shareholding in the Company after the Issue, which will allow it to exercise control over it.
Its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
In addition to normal remuneration or benefits and reimbursement of expenses, some of its Directors, key managerial personnel and Senior Managerial Personnel are interested in the Company to the extent of their shareholding in the Company.
There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.
The company is exposed to foreign currency exchange rate fluctuations, which may adversely affect its results of operations.
Its employees may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements.
The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of its Net Proceeds as disclosed in this Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.
The activities carried out at its manufacturing facilities, including any hazardous activity, can cause injury to people or property in certain circumstances.
QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
Any future issuance of Equity Shares, or convertible securities or other equity linked instruments by it may dilute the shareholding of the Investor, or any sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

OBSC Perfection Ltd Peer Comparison

Understand the company’s industry standing

OBSC Perfection Ltd

RACL Geartech Ltd

Talbros Automotive Components Ltd

Face Value

Standalone / Consolidated

Standalone

Total Income Rs. Cr.

115.0303

409.52

778.2668

EPS-Basis

6.84

36.54

17.82

EPS-Diluted

6.84

36.54

17.82

NAV Per Share

16.85

189.96

87.02

P/E-Basic EPS

---

26.58

17.78

P/E-Diluted EPS

---

RONW(%)

40.61

19.24

20.47

Latest NAV Period

---

Latest NAV

---

How to check the allotment status of OBSC Perfection Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 22 Oct 2024 & closes on 24 Oct 2024.

OBSC Perfection Ltd IPO will close on 24 Oct 2024.

Manufacturing facilities situated at two of the most prominent auto hubs of India.
Strategic advantage through streamlined supply chain with adjacent raw material supplier.
Qualified employee base and proven management team.
Consistent financial performance.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Omega Bright & Steel Component	8925000	50	8925000	36.49
2	Ashwani Leekha	4462500	25	4462500	18.25
3	Saksham Leekha	3587847	20.1	3587847	14.67
4	Sakshi Leekha	874650	4.9	874650	3.58
5	Aarush Leekha	1	---	1	---
6	Manya Jain	1	---	1	---
7	Reenu Leekha	1	---	1	---

Its business largely depends upon the company's top 10 customers which contributed 70.10%, 64.66% and 66.34% in the Fiscal 2024, 2023 and 2022. The loss of any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
Its business is dependent on the performance of the automotive industry. Economic cyclicality coupled with reduced demand in these other industries, in India or globally, could adversely affect its business, results of operations and financial condition.
The Company is dependent on a domestic market for its sales and any downturn in it could reduce the company sales.
Its business and profitability are substantially dependent on the availability and cost of its raw materials and any disruption to the timely and adequate supply or volatility in the prices of raw materials may adversely impact its business, results of operations, cash flows and financial condition.
The company does not have long-term agreements with its suppliers for raw materials and an inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on its business, results of operations, financial condition and cash flows.
Its three manufacturing facilities are located in Pune, Maharashtra and Thiruvallur, Tamilnadu which exposes its operations to potential risks arising from local and regional factors such as adverse social and political events, weather conditions and natural disasters.
A significant portion of its domestic sales are derived from the West zone and South zone, any adverse developments in this market could adversely affect its business.
Its may faces several risks associated with the proposed expansion of its manufacturing units, which could hamper the company growth, prospects, cash flow its business and financial condition.
Its Restated Financial Statements are Prepared and Signed by the Peer Review Auditors who is not Statutory Auditors of the Company as required under the provisions of ICDR.
The company has significant working capital requirements for its smooth day to day operations of business and discontinuance or its inability to acquire adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability and growth prospects.
The company Operate its Registered Office and Manufacturing Facilities that are held by it on leasehold basis. In the event the company lose or are unable to renew such leasehold rights, its business, results of operations, financial condition, cash flows and prospects may be adversely affected.
Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders for such capital expenditure machinery.
Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.
The company requires several approvals, licenses, registrations and permits for its business and are required to comply with certain rules, regulations and conditions to operate its business and failure to obtain, retain or renew such approvals and licences in a timely manner or to comply with the requisite rules, regulations and conditions may adversely affect its operations.
If the company fail to manage its growth effectively, its may be unable to execute the company business plan or maintain high levels of service and satisfaction, and its business, results of operations, cash flows and financial condition could be adversely affected.
The Company does not have any documentary evidence for the past Experience of some individual promoters.
Its Promoters have extended personal guarantee in connection with some of its debt facilities to the company and one of its promoter group entity. There can be no assurance that such personal guarantee will be continued to be provided by its Promoters in future or can be called at any time, affecting the financial arrangements.
The shortage or non-availability of power may adversely affect its business, result of operations, financial conditions and cash flows.
The Company had negative cash flows during certain fiscal years in relation to its operating, investing and financing activities. Sustained negative cash flows in the future would adversely affect its results of operations and financial condition.
There have been some instances of incorrect filings with the Registrar of Companies and other noncompliances under the Companies Act in the past which may attract penalties.
The company presently does not own the trademark or logo under which its currently operate and if third parties infringe the trademark, logo and intellectual property that the company use, its business and reputation would be adversely affected.
Its operations are labour intensive, and the company manufacturing operations may be subject to unionization, work stoppages or increased labour costs, which could adversely affect its business and results of operations.
Its operations are subject to environmental and health and safety laws and other government regulations which could result in increased liabilities and increased capital expenditures.
The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with its Shareholders.
Conflict of interest may arise as its Promoter group entities and Group entities are authorized to carry on similar line of business as the Company which may lead to real or potential conflicts of interest for its Promoters or Directors.
The company has outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
The average cost of acquisition of Equity Shares for its Promoters may be lower than the Issue Price.
The company has incurred borrowings from commercial banks and any non-compliance with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition.
Certain unsecured loans have been availed by it which may be recalled by lenders.
The company operates in a competitive and fragmented industry with low barriers to entry and may be unable to compete with a range of unorganized sector.
The company is dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products and any failure to maintain a continuous supply of raw materials or to deliver its products to the company customers in an efficient and reliable manner could have a material and adverse effect on its business, financial condition and results of operations.
The company engage contract workers for carrying out functions of its business operations. In the event of non-availability of such contract workers at reasonable cost, any adverse regulatory orders or any default on payments to them by the agencies could lead to disruption of the manufacturing facilities and its business operations.
Its overall margins may fluctuate as a result of the product manufactured by the company.
Unplanned slowdowns or shutdowns of its manufacturing operations could have an adverse effect on its business, results of operations, financial condition, cash flows and future prospects.
Its may be subject to significant risks and hazards when operating and maintaining its Manufacturing Facilities, for which the company insurance coverage might not be adequate.
The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.
Significant failures or disruption of its information technology systems could adversely impact its business, results of operations and financial condition.
The company has not independently verified data from the industry and related data contained in this Draft Red Herring Prospectus.
Its Promoters will continue to retain significant shareholding in the Company after the Issue, which will allow it to exercise control over it.
Its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
In addition to normal remuneration or benefits and reimbursement of expenses, some of its Directors, key managerial personnel and Senior Managerial Personnel are interested in the Company to the extent of their shareholding in the Company.
There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.
The company is exposed to foreign currency exchange rate fluctuations, which may adversely affect its results of operations.
Its employees may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements.
The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of its Net Proceeds as disclosed in this Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.
The activities carried out at its manufacturing facilities, including any hazardous activity, can cause injury to people or property in certain circumstances.
QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
Any future issuance of Equity Shares, or convertible securities or other equity linked instruments by it may dilute the shareholding of the Investor, or any sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

The Issue type of OBSC Perfection Ltd is Book Building - SME.

The minimum application for shares of OBSC Perfection Ltd is 1200.

The total shares issue of OBSC Perfection Ltd is 6602400.

Initial public issue of up to 66,02,400* equity shares of face value of Rs. 10 each ("Equity Shares") of OBSC Perfection Limited ("Company") for cash at a price of Rs. 100 per equity share (including a share premium of Rs. 90 per equity share) ("Issue Price") aggregating up to Rs. 66.02 crores of which up to 3,33,600 equity shares of face value of Rs. 10 each for cash at a price of Rs. 100 per equity share including a share premium of Rs. 90 per equity share aggregating to Rs. 3.34 crores was reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 62,68,800 equity shares of face value of Rs. 10 each at a price of Rs. 100 per equity share aggregating to Rs. 62.68 crores is herein after referred to as the "Net Issue". The issue and the net issue would constitute 27.00% and 25.64% respectively of the post issue paid up equity share capital of the company.

OBSC Perfection Ltd IPOOBSCP

Objectives of OBSC Perfection Ltd IPO

OBSC Perfection Ltd IPO Strategy

About OBSC Perfection Ltd

Strengths vs Risks of OBSC Perfection Ltd

Strengths

Risks

OBSC Perfection Ltd Peer Comparison

How to check the allotment status of OBSC Perfection Ltd IPO?

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What are the risks of OBSC Perfection Ltd?

What is the issue type of OBSC Perfection Ltd IPO?

What is the minimum application for shares of OBSC Perfection Ltd?

Total shares issue of OBSC Perfection Ltd IPO?

What are the objectives of OBSC Perfection Ltd IPO?

OBSC Perfection Ltd IPO