Summary of this article
Omnitech Engineering IPO has garnered most investor interest from employees
Omnitech Engineering looks to raise Rs 583 crore via fresh issue and OFS
Omnitech Engineering’s initial public offering (IPO) is in its third and final day of issue in the primary market. The subscription window for the public issue opened on February 25 and ends on February 27. The issue has has not been fully subscribed yet, but employees, who are able to apply to the issue at a discount price, led the demand in the primary market.
Omnitech Engineering IPO: Subscription Status
At the time of writing, Omnitech Engineering IPO was subscribed 90 per cent, with investors applying for a total of nearly 16.97 million shares, out of the 18.90 million shares on offer. Employees of the company have booked the issue 3.7 times their quota, applying for 180,048 shares so far, which is available to them at a discount of Rs 11 to the issue price.
Qualified institutional buyers (QIBs) have booked 2.3 times their reserved quota, applying for 12.54 million shares so far. Retail individual investors have applied for 26 per cent of their reserved quota, applying for nearly 2.42 million shares so far. Non institutional investors (NIIs) have so far applied for 45 per cent of the 4.04 million shares reserved for them.
Omnitech Engineering IPO: GMP
According to multiple websites that track grey market prices, the grey market premium (GMP) of Omnitech Engineering’s IPO was showing a gain of Rs 3 from the upper end of the price band. The GMP has risen from showing no gains till the first half of the second day of the issue window. However, the GMP indicates a gain of 1.30 per cent at listing, or a gain of Rs 3. This is slightly lower than a GMP of Rs 5 seen a day before. At present, the estimated listing price, according to the GMP, is Rs 230 per share.
The allotment of the shares is expected to be finalised on March 2 and the shares will tentatively list on the BSE and the NSE on March 5, 2026.
Omnitech Engineering IPO: Offer Size, Price Band
Omnitech Engineering aims to raise up to Rs 583.00 crore through a book-build issue consisting of a fresh issue of 18.40 million equity shares and an offer-for-sale (OFS) of 7.30 million shares. A price band of Rs 216-227 per share has been fixed and the lot size is at 66. For retail investors applying for the issue in the primary market, the minimum investment amount is Rs. 14,982 based on the upper end of the price band.
Equirus Capital is the book running lead manager to the issue, while MUFG Intime India is the registrar.
Omnitech Engineering IPO: Objective
Omnitech Engineering plans to use the proceeds from the fresh capital raise primarily to expand its capacity, for which the company has earmarked Rs 132.84 crore. This money will be used setting up new projects at Proposed Facility 1 and Rs 100.71 crore for Proposed Facility 2. The company also aims to use the proceeds to reduce its debt, for which Rs 50 crore has been earmarked, according to the red herring prospectus (RHP). Additionally, the company also plans to spend Rs 18.70 crore on capital expenditure at its existing Facility 2, and use the remaining funds for general corporate purposes.
