Omnitech Engineering IPO Sees Muted Demand on Final Day of Subscription, Books 20% of Total Amount

Omnitech Engineering IPO Sees Muted Demand in Primary Market

The initial public offer (IPO) of Omnitech Engineering, a manufacturer of precision-engineered components, received a 20 percent subscription on the third day of bidding, with 38.46-lakh shares bid for against 1.89-crore shares on offer, as per data from the National Stock Exchange (NSE) till 12:35 pm on Friday.

The IPO received the following subscription figures:

• QIBs (Qualified Institutional Buyers): 14 percent
• RIIs (Retail Individual Investors): 20 percent
• Non-institutional investors: 25 percent

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Omnitech Engineering had earlier raised Rs 174 crore from anchor investors. The price band for the IPO has been fixed at Rs 216-227 per share.

Grey-market activity suggests that Omnitech Engineering shares are commanding a GMP (Grey Market Premium) of up to 2 percent in the unregulated market. Investorgain quoted a GMP of Rs 3 for the shares, indicating a listing gain of 1.32 percent. Meanwhile, IPO Watch quoted a GMP of 1.76 percent.

The proceeds from the fresh issue will be utilized to:

• Repay debt
• Set up two new manufacturing facilities
• Fund capital expenditure requirements
• General corporate purposes

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Omnitech Engineering manufactures high-precision engineered components and supplies to global customers across industries such as energy, motion control & automation, industrial equipment systems, and other diversified industrial applications. Its clientele includes notable companies such as Halliburton Energy Services, Suzlon, and Bharat Aerospace Metals.

The IPO allotment is expected by March 2, while share listing is proposed on March 5.