Omnitech Engineering’s IPO: From Gears to Growth—A High-Octane Push for Global Precision

Omnitech Engineering Ltd, a leading manufacturer of precision-engineered components, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a ₹850 crore initial public offering (IPO). The issue is set to include a fresh issue of shares worth ₹520 crore and an offer for sale (OFS) of ₹330 crore by promoter Udaykumar Arunkumar Parekh. Equirus Capital and ICICI Securities are the appointed book-running lead managers for the IPO.

Key Highlights

IPO Structure:

Total issue size: ₹850 crore
Fresh issue: ₹520 crore
Offer for sale by promoter: ₹330 crore
Potential pre-IPO placement: Up to ₹104 crore, which could reduce the fresh issue size.

Use of Proceeds:

₹140 crore earmarked for repayment of debt
₹213.7 crore to set up two new manufacturing facilities
₹15.7 crore for installation of solar panels and new equipment at existing plants

Remaining funds for general corporate purposes.

Financial Performance:

FY25 net profit surged 132% to ₹43.9 crore
Revenue jumped 92.5% to ₹342.9 crore
As of April 2025, total outstanding debt stood at ₹316.1 crore.

Business Overview:

Supplies precision components to over 220 customers across 22 countries, including major global firms

Key sectors served:

Energy (42% of revenue), motion control & automation (36%), industrial equipment (20%)

Order book as of April 2025: ₹1,289.3 crore (403% of FY25 revenue).

Risks:

High dependency on top 10 customers (47.9% of revenue)
Over 75% of revenue from exports, exposing the company to global market risks
Working capital intensity and increasing debt levels flagged as key concerns.

Listing:

Shares proposed to be listed on both BSE and NSE.

Competitive Landscape

Omnitech Engineering competes with listed players such as Azad Engineering, Unimech Aerospace, PTC Industries, MTAR Technologies, and Dynamatic Technologies.

“The proceeds from the IPO will strengthen Omnitech’s balance sheet, support expansion into new manufacturing projects, and enhance operational capabilities,” stated the company in its filing.

Source: Moneycontrol, Economic Times Legal, HDFC Sky