The initial public offering (IPO) of Omnitech Engineering managed to scrape through on the final day of bidding, closing with full subscription despite muted investor participation during most of the offer period.
📊 Subscription Status
As per exchange data, the IPO received bids for 2.16 crore shares against 1.79 crore shares on offer, translating into an overall subscription of 1.20 times.
Segment-wise break-up:
- Qualified Institutional Buyers (QIBs): 3x subscription
- Non-Institutional Investors (NIIs): 0.77x
- Retail Investors: 0.35x
- Employees: 4.47x (strongest demand segment)
Robust participation from institutional investors and employees helped the issue cross the finish line.
IPO Structure & Key Details
The ₹583 crore public issue comprised:
- Fresh Issue: 1.84 crore shares worth ₹418 crore
- Offer for Sale (OFS): 0.73 crore shares aggregating ₹165 crore
Reservation Split:
- 50% for QIBs
- 35% for Retail Investors
- 15% for NIIs
The mainboard IPO is proposed to list on both the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), tentatively on March 5.
- Book Running Lead Manager: Equirus Capital
- Registrar: MUFG Intime India
Allotment & Refund Timeline:
- Allotment: March 2
- Refund Initiation: March 4
- Shares credited to demat accounts: March 4
Grey Market Premium (GMP)
As of today, the grey market premium (GMP) stands at ₹4 per share, indicating a modest listing gain expectation.
Based on the upper price band of ₹277 per share, the estimated listing price is around ₹281, reflecting a premium of approximately 1.4–1.8%. However, market experts caution that GMP trends are unofficial and speculative indicators.
Utilisation of Funds
The company intends to deploy fresh issue proceeds toward:
- Repayment of debt
- Setting up two new manufacturing facilities
- Capital expenditure requirements
- General corporate purposes
About the Company
Rajkot-based Omnitech Engineering manufactures high-precision engineered components catering to global industries including energy, motion control, automation, and industrial equipment systems.
Its client portfolio includes leading names such as Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.
In the listed space, the company will compete with peers like:
- Azad Engineering
- Unimech Aerospace and Manufacturing
- PTC Industries
- Dynamatic Technologies
- MTAR Technologies
Expert View
Market analysts note that while retail participation remained subdued, strong QIB interest provided confidence in the company’s growth prospects. The modest GMP suggests cautious optimism rather than aggressive listing expectations.
Investors are advised to evaluate valuation metrics, order book strength, debt levels, and margin sustainability before making investment decisions.
Disclaimer: Investors should consult certified financial advisors and carefully review the offer document before investing.
