On the first day of subscription, the IPO was subscribed 8% overall against the 1.89 crore shares on offer. The retail investor segment saw 6% subscription against its allocated 94.30 lakh shares.
The Rs 583 crore issue comprises a fresh issue of Rs 418 crore and an offer for sale (OFS) of Rs 165 crore.
Omnitech Engineering GMP today.
On February 26, the grey market premium (GMP) for the IPO was hovering around 2%, indicating cautious optimism in the unofficial market. A GMP at this level suggests the stock could see a modest listing gain, provided broader market sentiment remains stable. Based on the current premium, the estimated listing price is in the range of Rs 230–231 per share, slightly above the upper end of the issue price band.
Omnitech Engineering subscription status
On the first day of bidding, Omnitech Engineering’s IPO was subscribed 8% overall, according to BSE data, reflecting a cautious start to the issue.
Among investor categories, the Retail Individual Investor (RII) segment was subscribed 6% against the 94.30 lakh shares reserved for it, indicating moderate participation from small investors.The Non-Institutional Investor (NII) portion also saw 6% subscription against 40.41 lakh shares on offer, suggesting limited early interest from high-net-worth individuals.
Meanwhile, the Qualified Institutional Buyers (QIBs) segment was subscribed 13% against its allocated 40.41 lakh shares, showing relatively stronger demand from institutional investors compared to other categories on Day 1.
Omnitech Engineering IPO details
The Omnitech Engineering IPO comprises a fresh issue of 1.84 crore equity shares worth Rs 418.00 crore, along with an offer for sale of 0.73 crore shares amounting to Rs 165.00 crore.
The IPO opened for subscription on February 25, 2026, and will close on February 27, 2026. The basis of allotment is likely to be finalised on March 2, 2026.
The shares are proposed to be listed on BSE and NSE, with a tentative listing date of March 5, 2026.
The IPO price band has been set between Rs 216 and Rs 227 per share. Applications must be made for a minimum of 66 shares per lot. At the upper end of the price band, retail investors will need to invest at least Rs 14,982 for one lot.
Equirus Capital Pvt. Ltd. has been appointed as the book-running lead manager for the issue, while MUFG Intime India Pvt. Ltd. is acting as the registrar.
Business profile and growth
Omnitech Engineering is a manufacturing and engineering solutions provider focused on high-precision engineered components, turnkey industrial automation systems, and customised mechanical solutions.
The company caters to a global clientele across industries such as energy, motion control, automation, and industrial equipment, with several of its products deployed in safety-critical applications. It operates manufacturing units in Gujarat and serves both domestic and international markets.
The company delivered strong financial growth in FY25, with revenue increasing by 92% to Rs 349.71 crore from Rs 181.95 crore in FY24. Net profit rose to Rs 43.87 crore in FY25, compared to Rs 18.91 crore in the previous fiscal year. EBITDA margins remained robust at 33.64% during FY25.
For FY25, the return on capital employed (ROCE) stands at 9.19%, while the pre-IPO earnings per share (EPS) are reported at Rs 4.17.
Valuation and peer comparison
At the upper price band of Rs 227, the stock is valued at a post-issue P/E of roughly 50x–53x based on FY25 earnings. The pre-IPO P/E is indicated at 54.47x.
While this represents a premium valuation for a mid-cap engineering firm, it compares relatively lower than certain listed peers. As per the comparison table in the IPO note, Azad Engineering trades at a P/E of 103.30x and MTAR Technologies at 196.78x.
Swastika Investmart has assigned a “Subscribe” rating to the issue. In its note, the brokerage said Omnitech is a high-growth precision engineering player with a strong client base and healthy margins, though it flagged that debt, with a debt-to-equity ratio of 1.60x, needs monitoring.
Swastika said that at the upper price band, the valuation appears reasonable relative to peers, making it suitable for growth-focused investors with a 2-3 year horizon looking to participate in the Make in India theme.
Objects of the issue and risks
The proceeds from the fresh issue will be used for debt repayment or prepayment of existing borrowings, capital expenditure for new projects at proposed facilities, expansion of an existing facility, and general corporate purposes.
Key strengths include strong expertise in high-precision engineered components for safety-critical applications, a diversified global customer base across 24 countries, integrated manufacturing facilities in Gujarat and experienced promoter-led management with nearly two decades of industry presence.
However, the company faces certain risks. Revenue concentration from top customers could impact stability if any key client is lost. Manufacturing facilities are geographically concentrated in Rajkot, Gujarat. Significant borrowings increase financial and repayment obligations, and exposure to foreign exchange fluctuations may affect profitability.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)