Omnitech Engineering's IPO Opens February 25—Here's What Investors Need to Know
Omnitech Engineering is set to launch its initial public offering (IPO) on February 25, 2023. The company, which specialises in high-precision engineered components, will open subscriptions for three days, closing on February 27. Its shares will then debut on the stock market on March 5, 2023.
The IPO consists of two parts: a fresh issuance of equity shares worth up to Rs 418 crore and an Offer For Sale of Rs 165 crore by promoter Udaykumar Arunkumar Parekh. Investors can bid for shares within a price range of Rs 216 to Rs 227 each, valuing the company at over Rs 2,800 crore.
The funds raised will go toward repaying debt, establishing two new manufacturing plants, and covering capital expenditure. Some proceeds will also support general corporate needs. Before the public issue, the company secured Rs 174 crore from anchor investors on February 24. These included ICICI Prudential MF, Nippon India MF, WhiteOak Capital MF, and several international funds.
Omnitech supplies components to major global firms like Halliburton Energy Services, Suzlon, and Oshkosh Aerotech. Its products serve industries such as energy, automation, and aerospace. The IPO allocates 50% of shares to institutional buyers, 35% to retail investors, and 15% to non-institutional participants.
Omnitech Engineering's shares will begin trading on March 5, 2023. The company will use the IPO proceeds to expand operations and reduce debt. It joins competitors like Azad Engineering, Unimech Aerospace, and MTAR Technologies in the precision engineering sector.
