Investing in Omnitech Engineering IPO: Analyst Ratings & Key Details

Omnitech Engineering IPO: ₹583-Crore Issue Opens Feb 25; Valued at 64x FY25 Earnings​

The ₹583-crore initial public offering of Omnitech Engineering, a manufacturer of precision-engineered components and assemblies, will open for subscription on Wednesday, February 25, and close on February 27. The shares are proposed to be listed on both the BSE and NSE.

This will be among the last major public offerings of the month.

Issue Structure​

The IPO comprises:

• Fresh issue: ₹418 crore
• Offer for Sale (OFS): ₹165 crore by promoter Udaykumar Arunkumar Parekh

Ahead of the public issue, the company raised ₹174.6 crore from anchor investors. Participants in the anchor book included Societe Generale, Allianz Global, Ashoka India Equity Investment Trust, Malabar India Fund, Nuvama, and Sanshi Fund.

Price Band and Lot Size​

• Price band: ₹216–₹227 per share
• Lot size: 66 shares

At the upper end of the price band, the company is valued at a FY25 P/E of 64.0x on a post-issue basis.

Grey Market Premium​

Shares of Omnitech Engineering are currently commanding a grey market premium of around 2%. However, grey market premiums only reflect informal unlisted market sentiment and can change rapidly before listing.

Utilisation of Proceeds​

Out of the ₹418 crore fresh issue:

• ₹233.5 crore will be used to set up two new manufacturing facilities in Rajkot.
• ₹18.6 crore will be allocated toward solar panels and new equipment at the existing facility.
• ₹50 crore will be used to repay certain outstanding borrowings.
• The remaining amount will be used for general corporate purposes.

As of September 2025, total borrowings stood at ₹382.9 crore.

Valuation and Brokerage Views​

At 64.0x FY25 earnings (post-issue), the IPO is positioned at a discount to some listed peers:

• Azad Engineering: 103.3x
• MTAR Technologies: 196.8x
• Unimech Aerospace: 56.7x

SBI Securities has recommended a “Subscribe for long term” rating at the cut-off price, citing EBITDA margins in the 30–35% range and a strong order book.

Angel One has also assigned a “Subscribe” rating, stating that the valuation is supported by growth momentum, healthy profitability, a robust order book, and proposed capacity expansion through new facilities in Rajkot.

Business Overview​

Omnitech Engineering manufactures high-precision, safety-critical components and assemblies for global original equipment manufacturers across:

• Energy
• Motion control and automation
• Industrial equipment systems

The company serves over 256 customers across 24 countries, including the US, Germany, the UK, the UAE, France, Australia, and Canada. It also operates a warehouse facility in Houston, US, to enhance supply chain efficiency and customer responsiveness.

Order Book and Export Mix​

As of September 30, 2025:

• Order book: ₹1,764.78 crore
• Equivalent to 551% of 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.

Peer Comparison​

Omnitech Engineering competes with listed players such as:

• Azad Engineering
• Unimech Aerospace and Manufacturing
• PTC Industries
• MTAR Technologies
• Dynamatic Technologies

IPO Timeline​

• Book-running lead managers: Equirus Capital and ICICI Securities
• Registrar: MUFG Intime India
• Basis of allotment: Expected on March 2
• Tentative listing date: March 5

With a sizeable order book, strong export exposure, and planned capacity expansion in Rajkot, Omnitech Engineering’s IPO is positioned as a precision manufacturing play catering to global OEM demand. Investors will watch subscription trends and listing performance closely.