New Delhi, February 26: The initial public offering of Omnitech Engineering Ltd, a manufacturer of precision-engineered components, was subscribed 13 percent on the second day of bidding on Thursday, reflecting cautious participation across investor categories.
According to NSE data, the IPO received bids for 24,94,866 shares against 1,89,09,890 shares on offer.
Subscription Status Across Categories
The Qualified Institutional Buyers portion was subscribed 13 percent, while the Retail Individual Investors segment also saw a 13 percent subscription. The non-institutional investors category received 11 percent subscription by the end of the second day.The company had earlier mobilized over Rs 174 crore from anchor investors on Tuesday, providing initial support to the Rs 583 crore public issue. The IPO will close for subscription on February 27.
Price Band and Issue Structure
The price band for the Omnitech Engineering IPO has been fixed at Rs 216 to Rs 227 per share, valuing the company at over Rs 2,800 crore at the upper end of the band.The public issue comprises a fresh issue of equity shares aggregating up to Rs 418 crore and an Offer For Sale of Rs 165 crore by promoter Udaykumar Arunkumar Parekh.
Utilisation of Proceeds
Proceeds from the fresh issue are proposed to be used for debt repayment, establishment of two new manufacturing facilities, funding capital expenditure requirements, and general corporate purposes.Business Overview
Omnitech Engineering operates in the high-precision engineered components segment and caters to global customers across industries such as energy, motion control and automation, industrial equipment systems, and other diversified industrial applications.Its client base includes Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.
The IPO is being managed by Equirus Capital and ICICI Securities.
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