As an investor, it can be very challenging to decide whether the Om Power Transmission IPO is a good or bad investment. Not anymore, as in this blog, we will provide you with all the necessary details related to the Om Power Transmission IPO to help you decide whether you should Apply or Not. Read on to know the IPO risks, strengths, valuation, financial details, and expert opinion to make your investment decision better.
Strengths:
- The firm has a track record of completing projects on time, with over 14 years of experience in running a power transmission infrastructure EPC company.
- As of December 31, 2025, Om Power has a strong order book of ā¹744.6 crore.
- The company is promoted with experienced promoters and a senior management team with excellent expertise in the power transmission infrastructure sector.
Weaknesses:
- Most of the companyās revenue is generated from the state of Gujarat. Issues like social, political, economic, or natural disasters that occur in these regions can impact the business.
- As of December 31, 2025, the firm has a pending trade receivable of ā¹1,126.02 lakhs for over six months. If not paid as soon as possible, it can affect the business and financial condition.
- Om Power generates about 71.55% of revenue from this top customer, GETCO. Losing this customer or a drop in their orders can negatively affect the business performance and cash flow.
- As of December 31, 2025, the company has a negative cash flow of ā¹37.38 crore, meaning its funds are locked up in the market. If this continues, it can impact the business performance.
Om Power Transmission IPO Review
| Reviewer | Recommendation |
| IPO Watch | |
| Canara Bank | |
| DRChoksey FinServ | |
| Emkay Global | |
| Hem Securities | |
| IDBI Capital | |
| Marwadi Shares | |
| Nirmal Bang | |
| SBICAP Securities | |
| Sharekhan | |
| SMC Global | |
| Sushil Finance | |
| Swastika Investmart | |
| Ventura Securities | |
| Geojit | |
| Reliance Securities | |
| Capital Market | |
| BP Wealth | |
| ICICIdirect | |
| Choice Broking |
Promoters & Track Records, if any
- Kalpesh Dhanjibhai Patel, aged 51 years, is one of the Promoters and is also the Chairman and Executive Director of the Company. He holds 86,10,000 equity shares, representing 32.28% of the paid-up Equity share capital.
- Kanubhai Patel, aged 54 years, is one of the Promoters and is also the Managing Director of the Company. He holds 86,10,000 Equity shares, representing 32.28% of pre-Offer Equity share capital.
- Vasantkumar Narayanbhai Patel, aged 52 years, is one of the Promoters and is also the Whole-time Director of the Company. He holds 73,80,000 Equity shares, representing 27.67% of pre-Offer Equity share Capital.
Peer Comparison with the Company
| Name of the Company | Face Value(ā¹) | EPS basic (ā¹) | EPS Diluted(ā¹) | RONW (%) | P/E Ratio | NAV(ā¹) |
| Om Power Transmission Limited | 10 | 8.98 | 8.98 | 30.40% | 21.13 | 29.53 |
| Listed Peers | ||||||
| Rajesh Power Services Limited | 10 | 57.74 | 57.74 | 35.44% | 16.38 | 146.3 |
| Advait Energy Transitions Limited | 10 | 29.06 | 28.82 | 16.27% | 57.52 | 182.03 |
| Viviana Power Tech Limited | 10 | 32.19 | 32.04 | 34.65% | 25.15 | 95.10 |
Industry Peer Group P/E ratio
Among its peers, Advait Energy Transitions Limited has the highest P/E ratio of 57.52, while Rajesh Power Services Limited has the lowest at 16.38, with an average P/E ratio of 33.02.
Expansion
- A fund of ā¹11.21 crore will be used towards the purchase of machinery and equipment.
- The proceeds of ā¹25 crore are for repayment/prepayment of existing borrowings taken by the company.
- A portion of ā¹55 crore for the long-term capital requirement of the company.
- Lastly, the remaining funds will be utilized towards general corporate purposes.
Om Power Transmission IPO ā Should You Apply or Not?
A company that built a robust transmission network through its expertise in building high-voltage transmission lines, substations, and underground cables is Om Power Transmission. An EPC company that handles everything from design, engineering, supply, erection, installation, testing, commissioning, and maintenance, Om Power is launching its IPO on the 9th of April.
Om Power Transmission offers EPC infrastructure development services to key companies involved in the power transmission sector, with over 14 years of experience. From starting its business in Gujarat to expanding its operations in Rajasthan and Punjab, along with the union territory of Dadra and Nagar Haveli and Daman and Diu.
Coming to its financials, in FY25, the company generated a revenue of ā¹281.65 crore, from ā¹184.39 crore in FY24. While we saw a sudden jump in profit from reporting ā¹6.23 crore in FY23 to ā¹22.08 crore in FY25, some investors are questioning its sustainability. Moreover, the companyās operating profit increased from ā¹12 crore to ā¹36 crore, while operating margin improved from 10% to 13%.
At the upper price band of ā¹175, the IPO is valued at a PE of 21.13x. When compared with the industryās P/E, the IPO seems fairly priced. On April 8, the Om Power Transmission GMP is ā¹1.5, indicating a listing gain of around 1%.
My verdict: Investors looking for short-term gains can apply for this IPO after evaluating GMP and subscription numbers. While knowledgeable investors can consider investing a small amount for the long term. For more such updates and IPO-related queries, follow IPO Watch.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the companyās RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
