crore IPO opens today: Should you subscribe?

Omnitech Engineering's ₹583-crore IPO opens today: Should you subscribe? Omnitech Engineering is a precision engineering company engaged in manufacturing high-precision, safety-critical components and assemblies for global OEMs across the energy, motion control and automation, and industrial equipment systems sectors. It competes with listed peers such as Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, MTAR Technologies, and Dynamatic Technologies. By Meghna Sen The ₹583-crore initial public offering (IPO) of precision-engineered components and assemblies maker Omnitech Engineering will open for subscription on Wednesday, February 25, and close on February 27. This will be the last mainboard public issue in the current month. Omnitech Engineering IPO: Price band The price band for the issue has been fixed at ₹216-227 per share. The lot size is 66 shares. Omnitech Engineering IPO: GMP today Shares of Omnitech Engineering are commanding a grey market premium of around 2% today. However, grey market premiums only indicate how shares are valued in the unlisted market and can change rapidly. Omnitech Engineering IPO: Should you bid? At the upper price band, the company is valued at a FY25 P/E of 64.0x on a post-issue basis. Backed by an EBITDA margin profile of 30-35% and a strong order book, SBI Securities has recommended a 'Subscribe for long term' rating at the cut-off price. Angel One said the company's valuation appears attractive, compared with peers such as Azad Engineering at 103.3x, MTAR Technologies at 196.8x, and Unimech Aerospace at 56.7x. It added that the valuation is supported by strong growth momentum, healthy profitability, robust order book visibility, and upcoming capacity expansion through proposed facilities in Rajkot. The brokerage has assigned a 'Subscribe' rating to the issue. Omnitech Engineering IPO: Anchor book Ahead of the issue opening, the company raised ₹174.6 crore from anchor investors. Participants in the anchor round included Societe Generale, Allianz Global, Ashoka India Equity Investment Trust, Malabar India Fund, Nuvama, and Sanshi Fund, among others. Omnitech Engineering IPO: Other details The company is raising ₹418 crore through a fresh issue, while promoter Udaykumar Arunkumar Parekh will offload shares worth ₹165 crore via an offer-for-sale. Of the fresh issue proceeds, ₹233.5 crore will be used to set up two new manufacturing facilities in Rajkot, and ₹18.6 crore will be allocated towards solar panels and new equipment for the existing facility. A further ₹50 crore will be used to repay certain outstanding borrowings, with the remaining funds earmarked for general corporate purposes. The company had total borrowings of ₹382.9 crore as of September 2025. Company overview Omnitech Engineering is a precision engineering company engaged in manufacturing high-precision, safety-critical components and assemblies for global original equipment manufacturers across the energy, motion control and automation, and industrial equipment systems sectors. It serves over 256 customers across 24 countries, including the US, Germany, the UK, the UAE, France, Australia, and Canada. The company also operates a warehouse facility in Houston, US, to improve supply chain efficiency and customer responsiveness. As of September 30, 2025, the order book stood at ₹1,764.78 crore, equivalent to 551% of its FY25 revenue from sale of products and services. The company follows a largely export-oriented model, with 78.98% of revenue from operations coming from outside India in the six months ended September 30, 2025. Omnitech Engineering competes with listed peers such as Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, MTAR Technologies, and Dynamatic Technologies. Equirus Capital and ICICI Securities are the book-running lead managers to the issue, while MUFG Intime India is the registrar. The basis of allotment is expected to be finalised on March 2. The shares are likely to list on the BSE and NSE on March 5. Note To Readers Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.