OBSC Perfection Limited IPO

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OBSC perfection limited is a precision metal component manufacturer offering a diversified range of high-quality engineered products tailored to various industries, primarily catering to top Original Equipment Manufacturers (OEMs) in the automotive sector. Their expertise in precision engineering allows them to serve both the domestic and international markets with high-performance components.

Key Markets

i. Automotive Sector: The core of their business is in serving OEMs who supply components to leading automotive manufacturers in India. Their precision metal components are an integral part of the automotive supply chain, ensuring that the final products are reliable, durable, and meet stringent quality standards.

ii. Non-Automotive Sectors: While their roots are firmly planted in the automotive sector, they have strategically diversified into other industries:
a. Defense                 b. Marine              c. Telecommunication Infrastructure

While the majority of their revenue still comes from the automotive industry, they are actively expanding their footprint in defense, marine, and telecommunications. These sectors, though currently a smaller part of their business, represent significant growth opportunities for the future.

Product Portfolio

Their company prides itself on a diverse product range that caters to various needs across industries. Some of the key products in their portfolio include:
i. Cut blanks                            ii. Shafts (including spline shafts)                            iii. Torsion rods
iv. Piston rods                         v. Rack bar semi-finished components                   vi. Pinions
vii. Drive shafts                      viii. Gear shifters                                                          ix. Cable end fittings
x. Sensor boss                          xi. Sleeves                                                                     xii. Push plates
xiii. Hubs                                 xiv. Housing (both brass and aluminum)               xv. Fork bolts
xvi. Fasteners                          xvii. Connectors                                                         xviii. Ball pins
xix. Flanges                              xx. Male and female rings                                          xxi. Dozing adapters

They offer 24 precision-engineered products, which are widely used across the automotive, defense, marine, and telecommunication sectors.

Growth Outlook

Looking ahead, they aim to continue expanding their non-automotive business segments, leveraging their existing expertise in precision engineering. Their focus will be on deepening their presence in defense, marine, and telecommunications infrastructure sectors, while maintaining their strong foothold in the automotive sector. Additionally, they will explore further opportunities in export markets to enhance their global presence.

By continually investing in cutting-edge machinery, optimizing their production processes, and expanding their product range, they are well-positioned to drive sustained growth and deliver long-term value to their stakeholders.

Objects of the OBSC Perfection Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding capital expenditure requirements towards the purchase of machinery for the existing manufacturing facility (“Unit III”) at No. 126, Mappedu Village, Sriperumbudhur Taluka-Mappedu, Thiruvallur631402, Tamil Nadu, India. (“Proposed Expansion at Unit III”); ii. Funding capital expenditure requirements towards the purchase of machinery for the existing manufacturing facility (“Unit IV”) at Gat no. 417, Nighoje, Near Hotel Maha Laxmi and Mess, Nighoje, Chakan, Taluka-Khed, Pune-410501, Maharashtra, India. (“Proposed Expansion at Unit IV”); iii. Funding working capital requirements of the Company; and iv. General Corporate Purposes.

OBSC Perfection Limited IPO Details:

Open Date: Oct 22 2024
Close Date: Oct 24 2024
Total Shares: 6,602,400
Face Value: ₹ 10 Per Equity Share
Issue Size: 66.02 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 95 - 100 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 29 2024

Promoters And Management:

Asha Narang, 79, is the Promoter, Non-Executive Director, and Chairperson of their company since April 10, 2024. She holds a Bachelor of Arts degree from Pramila College, Delhi (1965) and has been with the Anglian Omega Group for 50 years. With extensive experience in the Steel & Auto Components industry, she has been Director of Omega Bright Steel Private Limited since 1970. Saksham Leekha, 35, is the Promoter and Managing Director of their company. He holds a Bachelor of Technology in Computer Science and Engineering from Guru Gobind Singh Indraprastha University. With over 7 years of experience, he has been involved in managing operations across their four units since the company's inception and was appointed Managing Director on May 22, 2024. He focuses on new product development, technology upgrades, and has a keen interest in robotics and automation. Ashwani Leekha, 57, is the Promoter and Executive Director of their company since its inception. He holds a Bachelor of Commerce degree from Delhi University and has over 35 years of experience in precision engineering and plant operations. He is responsible for overseeing plant operations and driving process improvements at the company.

Financials of OBSC Perfection Limited IPO:

Particular (In lakh) 5MFY25 Mar-24 Mar-23 Mar-22
Revenue from Operations 5653 11,503 9,636 5,653
Consumptions & Manufacturing Expenses 3694 6967 7328 4546
Purchases – Finished /Traded Goods 721 1980 802 242
Changes in Inventories -221 -411 -154 -252
Employee Cost 205 428 275 154
Other Expenses 222 464 410 254
EBITDA 1032 2,075 975 709
EBIDTA Margin 18.26% 18.04% 10.12% 12.54%
Other income 47 108 55 19
Depreciation 144 272 214 146
Interest 126 269 184 149
Profit before tax 809 1,642 632 433
Tax 207 422 173 72
Net profit 602 1,220 459 361
NPM (%) 10.56% 10.51% 4.74% 6.36%
EPS 2.46 4.99 1.88 1.48

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP Mcap (cr)
OBSC Perfection Limited 115 12 4.99 20 100 244
RACL Geartech Limited 410 39 36.24 29.2 941 1015
Talbros Automotive Component Limited 778 110 17.82 22.6 305 1884
All the data is as per FY24

Lead Manager of OBSC Perfection Limited IPO:

  1. Unistone Capital Pvt Ltd

Registrar of OBSC Perfection Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

OBSC Perfection Limited 6F, 6th Floor, M-6, Uppal Plaza, Jasola District Centre, South Delhi- 110025 Phone: 022-2697 2586 Email: abhishek@obscperfection.com Website: https://www.obscperfection.com/

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