Omnitech Engineering Secures Rs 175 Crore in Anchor Funding Ahead of Rs 583 Crore Initial Public Offering

Omnitech Engineering Raises Rs 174.6 Crore via Anchor Book Ahead of IPO

Omnitech Engineering, a precision-engineered components and assemblies maker, has successfully raised Rs 174.6 crore via its anchor book allocation ahead of its Rs 583-crore IPO opening, which is set to take place from February 25 to February 27.

The company plans to raise Rs 418 crore through the issuance of fresh shares, while promoter Udaykumar Arunkumar Parekh will be selling shares worth Rs 165 crore via an offer-for-sale. The price band for the offer has been fixed at Rs 216-227 per share.

Anchor Book Allocation

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A total of 76.91 lakh shares have been allocated to 17 anchor investors at the upper price band. Among the anchor investors, ICICI Prudential Mutual Fund and Nippon Life India Asset Management have been allocated 14.09 lakh shares each, worth approximately Rs 32 crore.

IPO Proceeds

The company intends to utilize the fresh issue proceeds for various purposes, including:

• Setting up two new manufacturing facilities in Rajkot, costing Rs 233.5 crore
• Purchase and installation of solar panels and new equipment/machinery for existing manufacturing facility, costing Rs 18.6 crore
• Repayment of certain outstanding borrowings, amounting to Rs 50 crore
• General corporate purposes

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Company Overview

Omnitech Engineering supplies products to energy, motion control and automation, and industrial equipment systems industries. The company competes with listed peers such as Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, MTAR Technologies, and Dynamatic Technologies.

Merchant Bankers

The merchant bankers managing the Omnitech Engineering IPO are Equirus Capital and ICICI Securities.