Omnitech Engineering underwhelms on D-St debut; shares list at 11% discount

Omnitech Engineering Share Price:  Shares of precision-engineered components manufacturer Omnitech Engineering disappointed investors with a weak debut on D-Street on Thursday, March 5, following the completion of its ₹583 crore initial public offering (IPO).

 

Omnitech Engineering shares kicked off their maiden trading at ₹202 apiece on the NSE, reflecting a discount of ₹25, or 11.01 per cent, from the issue price of ₹227 per share.  On the BSE, Omnitech Engineering listed at ₹205 per share, a discount of ₹22, or 9.69 per cent, compared with the issue price.

 

The listing was also weaker than grey market expectations. Ahead of its market debut, the company’s unlisted shares were quoted at around ₹217 in the grey market, implying a discount of ₹10, or about 4.5 per cent, to the issue price of ₹227, according to sources tracking unofficial markets.  CHECK Stock Market LIVE Updates

Omnitech Engineering IPO details

The public offering comprised a 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 by promoter Udaykumar Arunkumar Parekh. The IPO was priced in a band of ₹216 to ₹227 per share, with a lot size of 66 shares, and remained open for subscription from February 25 to February 27, 2026.

 

According to NSE data, the IPO saw a muted response from investors, with the issue subscribed 1.14 times overall, supported largely by last-day participation from qualified institutional buyers (QIBs). The retail investor portion was subscribed 2.86 times, while non-institutional investors (NIIs) and retail investors were subscribed 73 per cent and 33 per cent, respectively.

 

The basis of allotment was finalised on March 2, 2026, when the company set the issue price at ₹227 per share.

 

MUFG Intime India served as the registrar to the issue, while Equirus Capital and ICICI Securities acted as the book-running lead managers.

 

The company will not receive any proceeds from the offer for sale, as the funds will go to the promoter selling shareholder.

 

“Our Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds. The Promoter Selling Shareholder will be entitled to proceeds from the Offer for Sale to the extent of his Offered Shares, after deducting the proportion of Offer-related expenses,” said the company in its Red Herring Prospectus (RHP).

 

According to the RHP, the company plans to utilise ₹50 crore from the net proceeds of the fresh issue for repayment or prepayment of certain outstanding borrowings, ₹233.5 crore for new projects, and ₹18.7 crore for capital expenditure at existing Facility 2. The remaining funds will be used for general corporate purposes.