Prosus Sees Significant IPO Upside in India...
26 Jun, 2025
Rajkot-based precision-engineered components manufacturer Omnitech Engineering has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 850 crore through an initial public offering (IPO). This marks a significant step for the company as it seeks to expand its footprint in the competitive engineering components sector and tap capital markets for growth funding.
The planned IPO includes a new issuance of equity shares for an estimated Rs 520 crore, along with an Offer For Sale (OFS) from the company’s promoter, Udaykumar Arunkumar Parekh, valued at Rs 330 crore. Moreover, Omnitech intends a pre-IPO share placement of upto Rs 104 crore which will decrease the size of the fresh issuance. The shares will be made available on BSE and NSE.
Equirus Capital and ICICI Securities are managing the IPO as book-running lead managers. MUFG Intime India Pvt Ltd (formerly Link Intime India) is acting as registrar to the issue.
The company’s operational and financial core would further benefit from strategically deploying fresh proceeds. For instance, Omnitech plans to spend 140 crores towards repaying part of their existing debt which stood at 316.1 crores as of April 2025. This effort should improve the balance sheet and reduce interest costs.
Most of the part will be dedicated to building two new manufacturing plants which seek to enhance production capacity and satisfy increasing demand. In addition, the company plans to spend approximately Rs 15.7 crore on sustainability initiatives including the installation of solar panels on the roof as well as the purchase of machinery and equipment for the facilities. The revolving funds will be devoted to general corporate usages such as working capital and other capital expenditures.
Omnitech Engineering focuses on high-precision manufactured components and assemblies. Omnitech Engineering deals in energy, motion control and automation, industrial equipment systems construction as well as other industrial applications. The company serves over 220 customers based in 22 countries which include the United States of America, UAE, Germany, Bulgaria and Sweden.
Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries and Bharat Aerospace Metals are all trusted clients of the firm. This broad-based customer portfolio emphasizes strong acceptance across various markets around the globe
With a sharp focus on precision engineering excellence, Omnitech invests alongside rivals such as Azad Engineering, Unimech Aerospac,e PTC Industries, Dynamatic Technologies and MTAR Technologies. As per April 2025 books, the firm held orders worth 1,289.3 crore which is equivalent to 403% revenue for fiscal year 2025, showcasing robust business health.
Omnitech Engineering has demonstrated strong financial growth in recent times. For the fiscal year 2025, the company reported a net profit of Rs 43.9 crore, marking a significant increase of 132 percent compared to the previous year. Revenue also surged by 92.5 percent to Rs 342.9 crore. However, the prior fiscal year had seen a sharp profit decline of 41.4 percent to Rs 18.9 crore, with revenue growing marginally by 0.5 percent to Rs 178.2 crore.
The company’s revenue mix for FY25 was diversified across sectors, with energy contributing 42 percent, motion control and automation 36 percent, and industrial equipment systems 20 percent. This diversification helps mitigate sector-specific risks and provides a balanced revenue base.
The IPO proceeds will enable Omnitech Engineering to capitalize on growth opportunities by expanding its manufacturing capabilities and reducing financial leverage. The planned new facilities are expected to enhance production efficiency and enable the company to meet increasing demand from both domestic and international customers.
The company’s focus on sustainable practices, such as installing solar panels, reflects its commitment to environmental responsibility and operational cost optimization. Moreover, the strong order book and diversified client portfolio provide a solid foundation for future growth.
Omnitech Engineering’s Rs 850 crore IPO represents a strategic move to strengthen its financial position and support its growth ambitions in the precision-engineered components sector. With a robust order book, diversified global clientele, and clear plans for capacity expansion and debt reduction, the company is well-positioned to leverage its expertise and scale new heights in the competitive industrial landscape.
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