Omnitech Engineering Sets ₹583 Crore IPO From 25 February

Omnitech Engineering, a precision-engineering company based in Rajkot, is preparing to enter the stock market with a ₹583 crore Initial Public Offering (IPO). The company has fixed a price band of ₹216-227 per share, valuing it at over ₹2,800 crore at the upper end. The IPO opens for public subscription on 25 February and will close on 27 February, while anchor investor bidding is scheduled for 24 February.

This IPO is a crucial step for Omnitech Engineering, aiming to raise funds for expansion, repay debt, and support general corporate purposes, while providing investors a chance to invest in a growing precision-engineering company with a global client base.

IPO Structure and Allocation for Omnitech Engineering

Omnitech Engineering IPO is a combination of fresh issue and offer for sale (OFS) components. The fresh issue is valued at ₹418 crore, and the OFS component offered by promoter Udaykumar Arunkumar Parekh is ₹165 crore. Funds raised through the fresh issue will be utilised to repay existing debt, establish two new manufacturing facilities, meet capital expenditure requirements, and support general corporate purposes.

Omnitech Engineering has also structured share allocation to ensure balanced participation. Half of the issue is reserved for qualified institutional investors (QIIs), 35% for retail investors, and the remaining 15% for non-institutional investors. The company’s stock market debut is scheduled for 5 March, with Equirus Capital and ICICI Securities managing the IPO.

Business Overview of Omnitech Engineering

Omnitech Engineering specialises in manufacturing high-precision engineered components for diverse industries such as energy, motion control and automation, industrial equipment systems, and other industrial applications. Its products cater to both domestic and international clients, including renowned companies like Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.

The company’s emphasis on precision and quality positions it strongly to meet global standards and sustain long-term partnerships with major industrial clients.

Omnitech Engineering Competitors

Domestically, Omnitech Engineering competes with established companies such as Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies, and MTAR Technologies. Despite the competition, the company’s focus on high-precision components and servicing global clients gives it a competitive edge, particularly in specialised engineering segments.

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Investor Takeaway for Omnitech Engineering

Omnitech Engineering’s ₹583 crore IPO offers investors a chance to invest in a precision-engineering firm with global clients and growth plans. Funds will support two new manufacturing facilities, capital expenditure, and debt repayment. With half the issue reserved for institutional investors and 35% for retail, the IPO allows broad participation.

Sources:

Business Line

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