Om Freight Forwarders IPO subscribed 2.5 times on Day 3; NII and QIB demand remains strong

Om Freight Forwarders IPO sees strong subscription on Day 3. 

The initial public offering of Om Freight Forwarders Ltd continue to see healthy investor interest on the third day of bidding, with overall subscription reaching 2.56 times on Wednesday.

Investors had put in bids for 2.02 crore shares against 79.17 lakh shares available, NSE data showed.

Strong response from NIIs and QIBs

Non-institutional investors (NIIs) drove the demand with their portion subscribed 5.13 times. Within this, the high-value segment of bids above Rs 10 lakh drew the strongest interest, at 5.18 times, led largely by individual investors who accounted for over 55 lakh shares. The smaller NII category, with bids between Rs 2 lakh and Rs 10 lakh, saw 4.51 times subscription.

Qualified institutional buyers (QIBs) also showed robust appetite, subscribing 3.95 times the reserved portion.

Foreign institutional investors accounted for 14.82 lakh shares, while the “Others” sub-segment contributed the bulk with 38.16 lakh shares.

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Retail investors and employees lag

Retail individual investors (RIIs) bid more cautiously, with the category subscribed 1.32 times. Of this, 40.56 lakh bids came at the cut-off price, while 13.49 lakh bids were price-specific. The employee portion remained undersubscribed at 0.31 times, with just 1.41 lakh bids placed against 4.5 lakh shares reserved.

Issue details

The Rs 122.31-crore IPO comprises a fresh issue of 18.1 lakh shares aggregating Rs 24.44 crore and an offer for sale of 72.5 lakh shares worth Rs 97.88 crore. The issue, which opened on September 29 and closes on October 3, is being sold in a price band of Rs 128-135 per share, with a lot size of 111 shares. At the upper end, retail investors require a minimum investment of Rs 14,985.

Post-issue, the company’s total equity share capital will increase from 3.19 crore shares to 3.37 crore shares. Smart Horizon Capital Advisors Pvt. Ltd. is the book-running lead manager, and Bigshare Services Pvt. Ltd. is the registrar to the issue.

The basis of allotment is expected to be finalised on October 6, with a tentative listing date fixed as October 8 on both the NSE and BSE.

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