Omnitech Engineering IPO Overview
Omnitech Engineering Limited is a Gujarat-based precision engineering and manufacturing company that produces high-precision engineered components and assemblies used across diverse industrial sectors such as energy, motion control & automation, industrial equipment systems, metal forming, oil & gas, aerospace, and other safety-critical applications.
The company’s ₹583 crore IPO comprises a fresh equity issue of ₹418 crore and an offer for sale (OFS) of ₹165 crore by promoter and founder Udaykumar Arunkumar Parekh.
Price band : ₹216 to ₹227 per share
The IPO opens for subscription on 25 February 2026 and closes on 27 February 2026, with shares expected to list on both the BSE and NSE on 5 March 2026.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | Mainboard |
| IPO Open Date | 25 February 2026 |
| IPO Close Date | 27 February 2026 |
| Anchor Investor Bidding | 24 February 2026 |
| Allotment Date | 2 March 2026 (Expected) |
| Credit to Demat | 4 March 2026 (Expected) |
| Refund Initiation | 4 March 2026 (Expected) |
| Listing Date | 5 March 2026 (Tentative) |
| Price Band | ₹216 to ₹227 per share |
| Face Value | ₹5 per share |
| Lot Size | 66 shares |
| Min Investment (Retail) | ₹14,982 at upper band |
| Issue Size | ₹583 cr (approx) |
| Fresh Issue | ₹418 cr |
| Offer for Sale (OFS) | ₹165 cr |
| Total Shares Offered | 2,56,82,818 equity shares |
| Listing | BSE & NSE |
Note: Retail investors can apply for multiples of 66 shares, making the IPO accessible with a relatively low entry amount compared to many mainboard issues.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Retail Individual Investors (RII) | ~35% |
| Non-Institutional Investors (NII) | ~15% |
(Standard SEBI allocation norms for this mainboard IPO.)
Selling Shareholders (OFS)
Offer For Sale (OFS): ₹165 crore.
Promoter and founder Udaykumar Arunkumar Parekh is selling a portion of his holdings via the OFS component, allowing existing shareholders to partially exit while new investors participate.
Objects of the Issue (Fund Utilization)
The net IPO proceeds (fresh issue portion) are planned to be used for:
- Repayment/Pre-payment of Borrowings: Strengthen the balance sheet and reduce finance costs. ~₹50 cr.
- Setting Up Two New Manufacturing Facilities: Expand production capacity at Rajkot to meet growing demand. ~₹233.5 cr.
- Capital Expenditure at Existing Facility: Upgrade existing plant capabilities. ~₹18.7 cr.
- General Corporate Purposes: Strategic growth and working capital support. Remainder of funds.
Expanding manufacturing capacity aligns with the company’s strategy to capture larger global and domestic contracts, particularly in engineered equipment and automation sectors.
Lead Managers & Registrar
- Book Running Lead Managers (BRLMs): Equirus Capital Pvt. Ltd. and ICICI Securities Ltd.
- Registrar to the Issue: MUFG Intime India Pvt. Ltd.
Promoters & Management
Promoters:
- Udaykumar Arunkumar Parekh – Founder and Managing Director.
- Dharmi A. Parekh – Promoter.
The promoter group has guided the company from a small precision components business into a globally oriented engineering firm supplying to customers across multiple countries and industries.
COMPANY DETAILS
Background & Operations:
Omnitech Engineering originated as a partnership in 2006 and became a public limited company in 2024, headquartered in Rajkot, Gujarat. It manufactures and supplies high-precision engineered components and assemblies, serving diverse sectors including energy, automation, industrial systems, metal forming, automotive and aerospace.
Manufacturing Footprint:
- Three modern facilities in Metoda, Chhapara and Padavala (Rajkot), Gujarat.
- Focus on precision machining, customized assemblies, and turnkey engineering solutions.
Market & Customers:
- The company exports to 24+ countries with a strong focus on high-value precision parts.
- Major clientele includes companies in energy services, automation, industrial equipment and aerospace sectors.
Financial Snapshot
| Period (₹ Cr) | Revenue | PAT | EBITDA Margin |
| FY25 (Mar 2025) | ~349.7 | ~43.9 | ~34%+ |
| FY24 (Mar 2024) | ~181.9 | ~18.9 | ~36%+ |
| Sep 2025 (6 M) | ~236.7 | ~27.8 | ~30%+ |
Revenue and profitability have shown strong growth with expanding margins, highlighting operational scale-up and rising global demand for precision components.
Trend:
- Revenue grew ~92% YoY in FY25.
- PAT grew ~132% in the same period.
Company Strengths
- Strong export orientation with majority revenue from global markets and diversified customer base.
- High-precision manufacturing expertise in safety-critical industrial applications.
- Robust growth track record with rapid revenue and profit expansion in recent years.
- Experienced promoter leadership with long industry presence.
- Balanced capital use – debt reduction and capacity expansion improve competitiveness.
- Diversified sector presence across energy, automation, industrial equipment and aerospace.
- Modern manufacturing footprint with CNC, automation and precision capabilities.
Key Risks & Challenges
- High leverage: Debt remains significant, requiring careful management.
- Customer/industry concentration: Some revenue tied to large clients and specific sectors.
- Forex & export exposure: Global sales subject to currency and regulatory risks.
- Execution risk: Successful capacity expansion must meet demand without cost overruns.
- Competitive pressure: Faces competition from established precision engineering peers.
- Working capital intensity: Manufacturing businesses often need high working capital.
Disclaimer
This document is for educational and informational purposes only and does not constitute investment advice or a recommendation. Investors should read the Red Herring Prospectus (RHP) and consult with certified financial advisors before making investment decisions. Past performance is not indicative of future results.
