Omnitech Engineering, a manufacturer of precision-engineed components, on Friday fixed a price band of Rs 216โ227 per share for its upcoming Rs 583 crore Initial Public Offering (IPO). At the upper end of the price band, the company is valued at over Rs 2,800 crore.ย The companyโs initial share sale will open for public subscription on February 25 and conclude on February 27. Bidding for anchor investors will take place on February 24, according to a public announcement.
IPO structure and utilisation of proceeds
The IPO comprises a fresh issue of equity shares worth up to Rs 418 crore and an offer for sale (OFS) of equity shares valued at Rs 165 crore by promoter Udaykumar Arunkumar Parekh.
The proceeds from the fresh issue will be utilised to repay debt, set up two new manufacturing facilities, fund capital expenditure requirements, and meet general corporate purposes.
Business profile and clientele
Omnitech Engineering manufactures high-precision engineered components and supplies them to global customers across industries such as energy, motion control and automation, industrial equipment systems, and other diversified industrial applications.
Its clientele includes Halliburton Energy Services, Suzlon Energy, Oshkosh Aerotech, Weatherford International, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries and Bharat Aerospace Metals.
Omnitech Engineering IPO GMP
Omnitech Engineering’s unlisted shares are trading at a grey market premium (GMP) of Rs 13. Considering the upper price band of Rs 227, the company’s shares are expected to list at around Rs 240, reflecting a grey market premium of 5.73 per cent.
Competition and listing details
The Rajkot-based company will compete with players such as Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies and MTAR Technologies.
The company has reserved 50 per cent of the issue size for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
Omnitech Engineering is scheduled to make its stock market debut on March 5. The IPO is being managed by Equirus Capital and ICICI Securities.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)