Omnitech Engineering IPO, which opened for subscription on Wednesday, February 25, was subscribed only 9% by the end of the first day of bidding. The mainboard IPO will close on Friday, February 27.
Omnitech Engineering produces high-precision engineered components and serves a global customer base spanning sectors such as energy, motion control and automation, industrial equipment systems, and other diversified industrial applications.
Its client portfolio includes companies like Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.
Omnitech Engineering IPO subscription status
By the close of the day, the issue was subscribed 0.09 times, with bids received for 15.86 lakh shares against the 1.79 crore shares on offer, according to exchange data.
The retail segment saw a subscription of 0.06 times, while the non-institutional investor (NII) category was also subscribed 0.06 times. The qualified institutional buyer (QIB) portion was subscribed 0.14 times. Meanwhile, the employee segment witnessed robust demand, getting oversubscribed by 2.20 times.
Omnitech Engineering IPO GMP today
The GMP of Omnitech Engineering IPO has fallen to ₹0 from ₹4, according to websites tracking gray market trends. This means that the estimated listing price of Omnitech Engineering IPO is likely to be the same as the IPO price of ₹227, as per InvestorGain.
The gray market premium (GMP) indicates the expected gap between an IPO’s issue price and its projected listing price in the unofficial market. However, it should be noted that GMP is only a preliminary signal and should not be considered the sole basis for making investment decisions.
Omnitech Engineering IPO Review
Brokerage firm Swastika Investmart, while giving a ‘subscribe’ rating to the Omnitech Engineering IPO, said that Omnitech Engineering is a fast-expanding participant in the precision engineering space with a strong customer base. Its revenue for FY25 surged 92% to ₹350 crore, while margins remain healthy at over 34%. However, the company’s debt level (D/E of 1.60x) warrants close monitoring.
“At the upper price band of ₹227, the valuation is priced at a postissue P/E of approximately 50x–53x (based on FY25 earnings). While this is a premium for a mid-cap engineering firm, it looks relatively conservative compared to listed peers like Azad Engineering (~103x) or MTAR Tech (~197x), reflecting a “growth at a reasonable price” opportunity. Best suited for growth-focused investors with a 2–3 year horizon looking to participate in the “Make in India”, said the brokerage firm.
Omnitech Engineering IPO details
The ₹583 crore offering consists of a fresh issue of 1.84 crore shares worth ₹418 crore and an offer for sale (OFS) of 0.73 crore shares aggregating to ₹165 crores.
The price band has been set at ₹216- ₹227 per share, with a lot size of 66 shares, translating into a minimum investment of ₹14,982 for retail investors. For NII investors, the minimum application is 14 lots (924 shares) amounting to ₹2,09,748, while NII investors must bid for at least 67 lots (4,422 shares) worth ₹10,03,794.
The share allotment for the Omnitech Engineering IPO is likely to be finalized on Monday, March 2. The IPO is proposed to be listed on both the National Stock Exchange of India and the BSE, tentatively on Thursday, March 5.
Funds raised from the fresh issue will be used for debt repayment, setting up two new manufacturing plants, capital expenditure, and general corporate purposes.
Equirus Capital Pvt. Ltd. is acting as the book-running lead manager, while MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
