On the second day, the IPO was subscribed 13% overall against the 1.89 crore shares available. The retail investor portion was also subscribed 13%, compared to its reserved allocation of 94.30 lakh shares.
The total issue size of Rs 583 crore includes a fresh issue worth Rs 418 crore and an offer for sale (OFS) of Rs 165 crore.
Omnitech Engineering GMP today
As of February 27, the IPO’s grey market premium (GMP) was around 2%, reflecting cautious optimism in the unofficial market. Such a premium points to the possibility of a modest listing gain, assuming overall market sentiment stays steady. At the current GMP, the stock is expected to list at approximately Rs 230 per share, marginally above the upper end of the issue price band.
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Omnitech Engineering subscription status
On the second day of bidding, Omnitech Engineering’s IPO saw an overall subscription of 13%, indicating a measured and cautious investor response.
In the retail category, the Retail Individual Investor (RII) segment saw 13% subscription against the 94.30 lakh shares earmarked for it, pointing to moderate interest from small investors.
The Non-Institutional Investor (NII) segment was subscribed 11% against the 40.41 lakh shares available.
The Qualified Institutional Buyers (QIBs) portion recorded 13% subscription compared to its allotted 53.88 lakh shares.
Omnitech Engineering IPO details
The Omnitech Engineering IPO includes a fresh issue of 1.84 crore equity shares aggregating to Rs 418 crore, along with an offer for sale (OFS) of 0.73 crore shares worth Rs 165 crore.
The public issue opened for subscription on February 25, 2026, and is scheduled to close on February 27, 2026. The basis of allotment is expected to be finalised on March 2, 2026.
The company plans to list its shares on the BSE and NSE, with a tentative listing date of March 5, 2026.
The price band for the IPO has been fixed at Rs 216 to Rs 227 per share. Investors can apply in lots of 66 shares, requiring a minimum investment of Rs 14,982 at the upper end of the price band.
Equirus Capital Pvt Ltd is the book-running lead manager to the issue, while MUFG Intime India Pvt Ltd has been appointed as the registrar.
Business profile and growth
Omnitech Engineering is a manufacturing and engineering solutions company specialising in high-precision engineered components, turnkey industrial automation systems, and tailored mechanical solutions.
It serves a global customer base across sectors including energy, motion control, automation, and industrial equipment, with several products used in safety-critical applications. The company operates manufacturing facilities in Gujarat and caters to both domestic and international markets.
In FY25, the company reported robust financial performance, with revenue rising 92% to Rs 349.71 crore from Rs 181.95 crore in FY24. Net profit increased to Rs 43.87 crore, up from Rs 18.91 crore in the previous fiscal. EBITDA margins remained strong at 33.64% for the year.
For FY25, return on capital employed (ROCE) stood at 9.19%, while pre-IPO earnings per share (EPS) was 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 to 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 to 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 and 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 experts are their own. These do not represent the views of The Economic Times.)