Omnitech Engineering Makes Debut on Public Markets: Key Details and Initial Reactions

Omnitech Engineering IPO Day 1: Key Highlights

• ₹216 - 227 per share IPO price band for Omnitech Engineering, positioning the company with a strong valuation of over ₹2,800 crore.
• ₹174 crore raised from anchor investors on February 24, including prominent firms such as ICICI Prudential Mutual Fund, Nippon India Mutual Fund, and Allianz Global Investors.
• 54.42% of the total anchor allocation, equating to 41,84,928 shares valued at nearly ₹95 crore, directed to five domestic mutual funds across eight different schemes.

IPO Details

• ₹418 crore fresh issuance of equity shares and ₹165 crore Offer For Sale component of equity shares by promoter Udaykumar Arunkumar Parekh.
• Funds raised will be used to pay off debt, establish two new manufacturing facilities, support capital expenditure needs, and for general corporate purposes.

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IPO Allocation

• Not more than 50% of shares reserved for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Institutional Investors (NII), and not less than 35% for Retail Investors.
• ₹10 million earmarked for eligible employees of the company.

Listing and Refund Schedule

• Tentative allotment finalisation on Monday, March 2.
• Refunds initiated on Wednesday, March 4.
• Shares credited to demat account of allottees on Wednesday, March 4.
• Listing on BSE and NSE on Thursday, March 5.

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Grey Market Premium

• ₹4 estimated grey market premium today.
• Listing price indicated at ₹231 apiece, 1.76% higher than the IPO price of ₹227.

Financial Performance

• Revenue for FY25 soared 92% to reach ₹350 crore.
• Margins remain robust (over 34%).
• Debt level (D/E 1.60x) requires careful observation.

Brokerage Recommendation

• Swastika Investmart recommends investing in Omnitech Engineering for growth-oriented investors with a 2-3 year timeframe.
• Valuation translates to a post-issue P/E ratio of about 50x-53x (based on FY25 earnings).
• Ideal for investors engaging in the "Make in India" initiative.