Omnitech Engineering to Launch Rs 583 Cr IPO on February 25
Omnitech Engineering is set to raise Rs 583 crore through its Initial Public Offering (IPO), with shares priced between Rs 216 and Rs 227 each. This announcement marks a significant step for the manufacturer of precision-engineered components, as it expands its reach within various industrial sectors.
Key Details of the IPO
– Price Band: Rs 216 – Rs 227 per share
– Total Amount to be Raised: Rs 583 crore
– Company Valuation at Upper Band: Over Rs 2,800 crore
– IPO Opening Date: February 25
– IPO Closing Date: February 27
– Anchor Investor Bidding Date: February 24
The IPO consists of two components:
– Fresh issuance of equity shares amounting to Rs 418 crore
– Offer for sale of equity shares valued at Rs 165 crore by promoter Udaykumar Arunkumar Parekh
Utilization of Funds
Proceeds from the fresh issue will be allocated towards:
– Debt Repayment
– Establishment of two new manufacturing facilities
– Funding capital expenditure requirements
– General corporate purposes
Company Background
Based in Rajkot, Omnitech Engineering specializes in crafting high-precision components that serve clients across diverse industries such as energy, motion control, automation, and industrial equipment systems. Notable customers include:
– Halliburton Energy Services
– Suzlon
– Oshkosh Aerotech
– Weatherford
– Lufkin Industries
– Oilgear
– Donaldson Company
Market Position and Investor Allocation
As Omnitech Engineering prepares for its market debut on March 5, it will be competing with established firms like Azad Engineering and PTC Industries. The IPO has strategically reserved:
– 50% for qualified institutional investors
– 35% for retail investors
– 15% for non-institutional investors
The underwriting of this IPO will be managed by Equirus Capital and ICICI Securities, ensuring robust support for its successful launch.
In summary, Omnitech Engineering’s upcoming IPO is a promising opportunity in the manufacturing sector, aiming to leverage its innovative capabilities to enhance operational efficiencies and secure market growth. Investors should stay informed about this significant event, as it could lead to exciting developments in the industrial landscape.