Omnitech Seeks SEBI Nod for ₹850 Crore Public Issue; Promoter to Offload ₹330 Cr via OFS

Mumbai, 23 June 2025: Rajkot-headquartered Omnitech Engineering Ltd, a precision-engineered components manufacturer, has filed its Draft Red Herring Prospectus (DRHP) with SEBI, seeking approval for a proposed ₹850 crore initial public offering (IPO). The issue includes a fresh equity issuance of ₹520 crore and an offer for sale (OFS) worth ₹330 crore by promoter Udaykumar Arunkumar Parekh.

Issue Structure and Offer Details

The IPO is being managed by Equirus Capital and ICICI Securities as Book Running Lead Managers (BRLMs), while MUFG Intime India Pvt Ltd has been appointed as the registrar. The company may also consider a pre-IPO placement of up to ₹104 crore. If exercised, this will reduce the fresh issue size accordingly.

Company Background: From Niche Expertise to Global Reach

Originally incorporated as a private firm and converted into a public limited company in October 2024, Omnitech Engineering boasts over 18 years of experience in manufacturing high-precision machined components. Its solutions are tailored for safety-critical sectors, including:

• Energy (with a focus on oil & gas exploration)
• Motion control and automation
• Industrial equipment and systems

With an extensive global footprint, Omnitech served over 220 clients across 22 countries in FY25, including key markets like the USA, UAE, Germany, and Canada.

Strong Financial Growth in FY25 Bolsters IPO Plan

Omnitech reported a sharp year-on-year revenue growth of 92.5% in FY25, alongside healthy profitability metrics. The company’s robust performance underpins its timing of the IPO.

Utilisation of Fresh Issue Proceeds

The ₹520 crore raised through the fresh issue will be allocated as follows:

• ₹140 crore towards repayment of borrowings
• ₹213.68 crore for investment in new projects
• ₹15.70 crore to upgrade existing facilities
• The remaining balance will be used for general corporate purposes

The entire OFS portion will be offloaded by the promoter, who currently holds over 93% equity in the company pre-issue.

Pre-Issue Shareholding Pattern

Currently, the promoters and promoter group hold 94.08% of the equity. The post-issue shareholding will be updated once allotment details are finalised.

Key Risks Identified in DRHP

Omnitech has flagged several risks that investors should consider:

• High dependency on the top 10 customers, contributing 47.9% of FY25 revenue
• Over 75% of revenue is export-driven, exposing the business to global trade and policy uncertainties
• Working capital intensity remains elevated, coupled with increasing debt levels
• The company’s order book of ₹1,289 crore (as of 30 April 2025) is heavily concentrated in the energy sector (over 94%)

Next Steps and Market Outlook

The IPO is currently pending SEBI’s final approval. The company will announce the price band and opening dates in consultation with its lead managers. Once approved, the shares will be listed on both the NSE and BSE.

Investors are advised to stay tuned for further updates on subscription timelines, valuation, and market positioning as Omnitech prepares to enter the public markets amid strong operational momentum and expanding global presence.

REF: https://nsearchives.nseindia.com/corporate/Registration_23062025131815_OmnitechEngineeringLimited-DRHP.pdf

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