Omnitech Engineering IPO opens: Analysts suggest long-term buy; here's why
Omnitech Engineering raised ₹174.6 crore from 17 anchor investors by allotting 7.69 million shares
 "Omnitech Engineering IPO opens: Analysts suggest long-term buy; here's why")
Omnitech Engineering IPO: Omnitech Engineering, a manufacturing and engineering solutions company, is set to launch its initial public offering (IPO) today, February 25, 2026. The company aims to raise ₹583 crore through a combination of fresh issue of 18.4 million equity shares worth up to ₹418 crore and an offer for sale (OFS) of 7.3 million shares worth up to ₹165 crore.
For investor allocation, 50 per cent of the issue size is reserved for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors, and 15 per cent for Non-Institutional Investors (NIIs) such as HNIs.
Ahead of the issue's opening, Omnitech Engineering raised ₹174.6 crore from anchor investors. The company has allotted 7.69 million equity shares to 17 anchor investors at ₹227 apiece, according to a circular uploaded on the BSE website.
Several domestic and global investors, including ICICI Prudential Mutual Fund (MF), Nippon India MF, WhiteOak Capital MF, Ashoka India Equity Investment Trust Plc, Malabar India Fund, Edelweiss MF and Allianz Global Investors, participated in the anchor round.
Should you subscribe to the Omnitech Engineering IPO?
SBI Securities - Subscribe
According to SBI Securities, Omnitech Engineering is a high-growth precision manufacturing company with a robust order book of ₹1,765 crore, offering strong near-term revenue visibility at 5.1x of FY25 projected revenues.
The company has shown strong CAGR in Revenue, Ebitda, and PAT of 39 per cent, 36 per cent, and 17 per cent, respectively, over FY23–25. Its D/E ratio is expected to fall from 1.6x to 0.5x post-issue, with ₹50 crore allocated for debt repayment, supporting higher profitability.
"At the upper price band of ₹227, the company is valued at FY25 PE of 64.0x on post-issue capital. Underpinned by a leading EBITDA margin profile of 30-35% and a strong order book, we recommend investors to 'Subscribe' for long term to the issue at cut-off price," the brokerage said in its note.
Swastika Investmart - Subscribe
Analysts at Swastika Investmart said that at the upper price band of ₹227, the IPO is valued at a post-issue P/E of around 50x-53x (FY25 earnings). While a premium for a mid-cap engineering firm, it is relatively conservative versus peers like Azad Engineering (103x) and MTAR Tech (197x), offering a "growth at a reasonable price" opportunity. The issue suits growth-focused investors with a 2–3 year horizon, aiming to participate in the "Make in India" theme.
Omnitech Engineering IPO GMP
According to sources monitoring the grey market, unlisted shares of Omnitech Engineering were trading at ₹231 on February 25, reflecting a marginal grey market premium (GMP) of ₹231 or 4 per cent against the upper end of the IPO price band, which is set at ₹216 to ₹227.
Here are the key details of Omnitech Engineering IPO:
Omnitech Engineering IPO is open for subscription over a three-day window, set to close on Friday, February 27. The share allotment process is expected to be completed by Monday, March 2.
The company's shares are tentatively scheduled to be listed on the NSE and BSE on Thursday, March 5.
The IPO is priced in the range of ₹216 to ₹227 per share, with a lot size of 66 shares. At the upper price of ₹227, a retail investor will need ₹14,982 for one lot. The maximum investment allowed for retail buyers is 13 lots (858 shares), which amounts to ₹1,94,766.
MUFG Intime India is the registrar of the IPO. Equirus Capital and ICICI Securities are the book-running lead managers.
According to the RHP, the company plans to utilise ₹50 crore from the net fresh issue proceeds for repayment or prepayment of certain outstanding borrowings availed by the company, ₹233.5 crore for new projects, and ₹18.7 crore for capital expenditure at the existing facility 2. The remaining funds will be used for general corporate purposes. Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.