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Omnitech Engineering IPO in focus: The initial public offering (IPO) of Omnitech Engineering, a manufacturer of precision-engineered components, which opened for subscription today, February 25, received a muted response from investors.

By the end of the day, the issue was subscribed just 0.09 times, with 15.86 lakh shares bid for against the 1.79 crore shares on offer, according to exchange data.

The retail portion was subscribed 0.06 times, while non-institutional investors (NIIs) subscribed 0.06 times, and the qualified institutional portion was subscribed 0.14 times. The employee portion showed strong interest, as it was oversubscribed by 2.20 times.

The ₹583 crore issue comprises a fresh issue of 1.84 crore shares, aggregating to ₹418 crore, and an offer for sale of 0.73 crore shares, aggregating to ₹165 crore.

The price band has been fixed at ₹216– ₹227 per share, while the lot size is set at 66 shares, requiring a minimum investment of ₹14,982 for retail investors. The lot size investment for sNII is 14 lots (924 shares), amounting to ₹2,09,748, and for bNII, it is 67 lots (4,422 shares), amounting to ₹10,03,794.

The IPO is reserved 50% for qualified institutional investors, 35% for retail investors, and the remaining 15% for non-institutional investors.

The mainboard IPO is proposed to list on both the NSE and BSE, tentatively on Thursday, March 05. Equirus Capital Pvt. Ltd. is the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar of the issue.

In other issue details, the Omnitech Engineering IPO share allotment is expected to be finalized on Monday, March 2. The company will initiate refunds on Wednesday, March 04, and the shares will be credited to the demat accounts of allottees on the same day following the refunds.

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.

As of today, the grey market premium (GMP) for the Omnitech Engineering IPO stands at ₹5 per share, suggesting that the stock is likely to list above its issue price. Based on this GMP and the upper price band, the estimated listing price is ₹232, reflecting a marginal 2.20% premium over the upper issue price of ₹227 per share.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it is important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Omnitech Engineering manufactures high-precision engineered components and supplies global customers across industries such as energy, motion control & automation, industrial equipment systems, and other diversified industrial applications.

Its clientele includes Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.

Rajkot-based Omnitech Engineering will compete with the likes of Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies, and MTAR Technologies.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities and broader financial ma...

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