Omnitech Engineering IPO Update

Grey Market Premium

Shares of Omnitech Engineering are commanding a grey market premium (GMP) of up to 7% ahead of the opening of its initial public offering (IPO) later this week. According to data available on platforms monitoring unofficial market activity, the company's shares were quoting a GMP of Rs 7 per share.

IPO Details

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The company has fixed a price band of Rs 216-227 per share for its Rs 583 crore IPO. The public issue will open for subscription on February 25 and close on February 27. The bidding for anchor investors is scheduled to take place on February 24.

Company Overview

Omnitech Engineering, a Rajkot-based company, manufactures high-precision engineered components and supplies to global customers across sectors such as energy, motion control, and automation. The company's clients include Halliburton Energy Services, Suzlon, and Weatherford. Upon listing, the company will compete with peers such as Azad Engineering, Unimech Aerospace and Manufacturing, and PTC Industries.

Listing and Proceeds

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The company is scheduled to debut on the stock exchanges on March 5. The proceeds from the fresh issue will be used for repayment of debt, setting up two new manufacturing facilities, meeting capital expenditure requirements, and for general corporate purposes.