Fabtech Technologies IPO, OM Freight Forwarders IPO Day 2 updates: Check GMPs, subscription, and key highlights

The initial public offerings of both Fabtech Technologies and OM Freight Forwarders entered the second day of bidding on Tuesday. On Day 1, Fabtech Technologies IPO saw a subscription rate of 70% whereas OM Freight Forwarders' IPO was fully subscribed. Investors bid for 1.39 times the shares on offer in OM Freight Forwarders IPO.

Looking at the Grey Market Premium (GMP), which indicates how the IPO shares are trading unofficially before they list on the stock exchange, Fabtech Technologies is trading at a premium of 1% over its issue price of Rs 191, hinting at modest market interest. Meanwhile, OM Freight Forwarders was seen trading at a higher 5.93% premium, reflecting stronger demand and positive sentiment among investors.

Fabtech Technologies IPO Details

Subscription Status: On Day 1, Fabtech Technologies’ IPO was 70% subscribed overall. Retail investors (RIIs) took up 71% of their allotted 42 lakh shares, and non-institutional investors (NIIs) bid for 46% of 18 lakh shares assigned to them. Qualified institutional buyers (QIBs) subscribed their portion of 60 lakh shares 77%. QIB participation usually increases in the following days.

Grey Market Premium (GMP): The GMP for Fabtech Technologies IPO has fallen sharply from about 18% at its peak to around 1% on Tuesday. This suggests that the shares are expected to list close to the upper end of the price band, approximately Rs 193 per share.

Key IPO Details: Fabtech Technologies is raising Rs 230 crore through this IPO, which consists entirely of a fresh issue of approximately 1.21 crore equity shares. The price band is fixed between Rs 181 and Rs 191 per share. For retail investors, the minimum application size is 75 shares.

The Fabtech Technologies IPO opened on September 29 and will close on October 1. The basis of allotment in the offer is expected to be finalised by October 3, with shares likely to start trading on the NSE and BSE from October 7, subject to regulatory approvals.

Use of IPO Proceeds: The company plans to deploy the funds raised to support its business needs. This includes Rs 1,270 crore for working capital, Rs 300 crore earmarked for acquisitions to accelerate growth, and the remainder for general corporate purposes and strategic flexibility.

Om Freight Forwarders IPO Details

Subscription Status: On Day 1, the Om Freight Forwarders IPO was oversubscribed by 1.39 times overall. Retail investors subscribed to 54% of the 43.60 lakh shares allocated to them. NIIs showed strong enthusiasm, bidding 4.03 times for their 17.64 lakh shares. QIBs also participated actively, subscribing to 1.10 times the 13.41 lakh shares allocated to them.

Grey Market Premium (GMP): The GMP for Om Freight Forwarders stands at a 5.93% premium over its issue price of Rs 135, indicating a probable listing price near Rs 144.
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IPO Timeline and Structure: The IPO includes a fresh issue worth Rs 24.44 crore and an offer for sale (OFS) by existing shareholders totalling Rs 97.88 crore. The subscription period runs from September 29 to October 3. The allotment is expected on October 6, with the shares likely to begin trading on the NSE and BSE on October 8.

Use of Funds: Funds raised through the fresh issue will primarily be used to purchase commercial vehicles and heavy equipment, amounting to Rs 17.15 crore. The rest of the proceeds will be used for general corporate purposes.