Omnitech Engineering raises ₹174 crore from 17 anchor investors; IPO opens today

Omnitech Engineering, a manufacturer of high-precision engineered components and assemblies, has raised ₹174 crore from 17 anchor investors ahead of the launch of its initial public offering (IPO) today. The Gujarat-based company aims to raise ₹583 crore through the IPO at a price band of ₹216–₹227 per share, valuing it at around ₹2,807 crore at the upper end.

According to exchange data, the company allotted 76,91,629 equity shares to anchor investors at ₹227 per share (face value ₹5 each). Of the total anchor allocation, 41,84,928 shares, or 54.42%, were allotted to five domestic mutual funds across eight schemes.

The anchor book saw participation from a mix of prominent domestic and global investors, including ICICI Prudential Flexicap Fund, Nippon India Small Cap Fund, Nippon Power & Infra Fund, WhiteOak Capital Flexi Cap Fund, Ashoka India Equity Investment Trust Plc, Malabar India Fund Limited, Edelweiss Recently Listed IPO Fund, and Allianz Global Investors Fund – Allianz Little Dragons, among others.

Key details of Omnitech Engineering IPO

Ahead of the issue opening, shares of Omnitech Engineering were trading at a grey market premium (GMP) of ₹4, indicating a potential listing price of around ₹231 — about 1.76% higher than the upper end of the issue price.

The IPO comprises a fresh issue of ₹418 crore and an offer for sale (OFS) of ₹165 crore by promoter and founder Udaykumar Arunkumar Parekh, who is the selling shareholder.

The issue will close on February 27. The allotment is expected to be finalised on March 2, and the shares are scheduled to list on the BSE and NSE on March 5.

The company has reserved 50% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. Additionally, shares worth ₹1 crore have been reserved for employees, who will receive a discount of ₹11 per share on the final issue price.

Investors can bid for a minimum of 66 equity shares and in multiples thereafter. At the upper price band of ₹227, the minimum investment for retail investors stands at ₹14,982.

Utilisation of proceeds

As per the offer document, Omnitech plans to utilise ₹233.5 crore from the fresh issue to set up two new manufacturing facilities in Rajkot. Around ₹50 crore will be used to repay certain borrowings out of its total outstanding debt of ₹382.9 crore. The company will also allocate ₹18.6 crore for installing rooftop solar panels, with the remaining funds earmarked for general corporate purposes.

Omnitech currently operates three manufacturing facilities catering to the energy, motion control and automation, industrial equipment systems, and metal forming sectors. Its order book stood at ₹1,764.7 crore as of September 2025, compared with ₹283.6 crore in March 2025. Exports accounted for 75% of revenue in FY25, while domestic operations contributed the remaining 25%.

On the financial front, net profit surged 132% year-on-year to ₹43.9 crore in FY25 from ₹18.9 crore in the previous year. Revenue rose 92.5% to ₹342.9 crore from ₹178.2 crore. For the six months ended September 2025, the company reported a profit of ₹27.7 crore on revenue of ₹228.1 crore.