Omnitech Engineering's IPO Gears Up with Strategic Investment

Omnitech Engineering Ltd's IPO, targeting Rs 583 crore, reached 13% subscription by its second day. With a mix of new shares and an Offer for Sale, funds raised will finance debt repayment and expansion projects. The company serves a global customer base with precision-engineered components.

The initial public offering of Omnitech Engineering Ltd, a precision-engineered components manufacturer, is making waves in the market. By the second day, the IPO had garnered 13% of its share target, marking a solid start for the ambitious Rs 583-crore initiative.

Omnitech, which recently raised over Rs 174 crore from anchor investors, has set its price band at Rs 216-227 per share, valuing the company at over Rs 2,800 crore. The offering is composed of new equity shares worth up to Rs 418 crore and an Offer For Sale valued at Rs 165 crore by promoter Udaykumar Arunkumar Parekh.

Proceeds from the IPO will be deployed to address debt repayment, establish new manufacturing facilities, enhance capital expenditure, and support general corporate purposes. The company delivers high-tech components globally across sectors such as energy and industrial equipment, boasting clients like Halliburton Energy Services and Oshkosh Aerotech.

(With inputs from agencies.)