Om Freight Forwarders IPO subscribed 4 times on final day of bidding amid strong NII, retail participation

The IPO of Om Freight Forwarders Ltd concluded its final day of bidding on Friday with strong overall demand. The Rs 122.31-crore public issue had been subscribed 3.86 times, with investors putting in bids for 3.05-crore shares against 79.17 lakh shares on offer, according to NSE consolidated data.

Robust response from NIIs

Non-institutional investors (NIIs) have driven the momentum for Om Freight Forwarders IPO, with the category subscribed 7.39 times. Within this, the high-value segment of bids above Rs 10 lakh attracted 6.49 times subscription, led largely by individual investors who applied for more than 69 lakh shares. Corporate investors added 4.47 lakh shares, while 2.75 lakh shares came through the “Others” sub-segment.

The smaller NII segment -- comprising bids between Rs 2 lakh and Rs 10 lakh -- saw even stronger demand at 7.28 times subscription. Here, individual investors accounted for 41.61 lakh bids, alongside smaller contributions from corporates and other investors.

Qualified institutional buyers (QIBs) subscribed 3.97 times their quota. Foreign institutional investors bid for 14.82 lakh shares, while the “Others” sub-category accounted for 38.36 lakh shares. No bids were recorded from domestic financial institutions or mutual funds up to this point.

The retail individual investor (RII) segment showed improved traction, reaching 2.74 times subscription. Of the 1.09 crore bids received, more than 83.6 lakh were placed at the cut-off price, with 25 lakh as price-specific bids.

The employee reservation continued to see limited interest, with only 2.33 lakh bids received against 4.5 lakh shares available -- translating into 0.52 times subscription.

IPO details and next steps

The Om Freight Forwarders IPO, which opened for subscription on September 29 and closes later today at 5 pm, consists of 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. Shares are being offered in a price band of Rs 128-135 per equity share, with a lot size of 111 shares. At the upper end, retail investors need to apply with a minimum investment of Rs 14,985.

Post-issue, the company’s total shareholding will rise to 3.37 crore shares from the pre-issue base of 3.19 crore shares. Smart Horizon Capital Advisors Pvt. Ltd. is the book-running lead manager, and Bigshare Services Pvt. Ltd. is acting as registrar.

The basis of share allotment is expected to be finalised on October 6, with listing of the equity shares scheduled on both the NSE and BSE on October 8.

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