Synopsis: Omnitech Engineering Ltd launched its ₹583 crore Initial Public Offering (IPO) today, February 25, 2026. Backed by a robust ₹174.6 crore anchor investment and a massive order book, this Gujarat-based precision manufacturer is positioning itself as a high-growth play in the “Make in India” engineering space.
Omnitech Engineering IPO 2026
Omnitech Engineering, a specialist in high-precision engineered components and turnkey automation, has entered the primary market during a period of intense activity.
The IPO will remain open for subscription until February 27, 2026, as the company seeks to capitalize on the rising global demand for safety-critical industrial parts.
Issue Details and Bidding Structure
The ₹583 crore offering is a strategic mix of a fresh issue worth ₹418 crore and an Offer for Sale (OFS) of ₹165 crore. The company has fixed a price band of ₹216–₹227 per share.
- Lot Size: 66 shares (Minimum investment of ₹14,982 for retail).
- Reservation: 50% for QIBs, 35% for Retail, and 15% for NIIs.
- Anchor Strength: Ahead of the launch, the company raised ₹174.6 crore from 17 marquee investors, including ICICI Prudential MF, Nippon India MF, and Allianz Global Investors.
Why the Order Book is a Major Catalyst
The most striking fundamental for Omnitech is its order book. As of September 30, 2025, the company had pending orders worth ₹1,764.78 crore—representing a staggering 5.1x of its FY25 revenue.
- Revenue Growth: Operations surged 92% year-on-year, reaching ₹342.91 crore in FY25.
- Profitability: Net Profit (PAT) jumped from ₹18.91 crore in FY24 to ₹43.87 crore in FY25, reflecting sharp operational scalability.
- Utilization of Funds: The company will deploy ₹233.5 crore to establish two new manufacturing facilities in Rajkot to fulfill its massive order pipeline.
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Valuation and Grey Market Trends
At the upper price band of ₹227, the IPO is valued at a post-issue P/E ratio of approximately 50x–53x based on FY25 earnings. While this is a premium valuation, it remains competitive compared to listed peers like Kaynes and Dixon Tech.
However, grey market sentiment has been conservative. The Grey Market Premium (GMP) currently stands at ₹4 to ₹7, suggesting a modest listing gain of roughly 1.7% to 3%. Analysts suggest this subdued GMP is due to broader market volatility and high leverage, as the company carries a total indebtedness of ₹382.9 crore.
Investment Verdict
Omnitech offers a compelling story for medium-to-long-term investors, given its 85% repeat-order rate and 75% export revenue.
While the high P/E ratio and debt levels are risks, the company’s industry-leading EBITDA margin of 34.31% provides a significant cushion for growth-oriented portfolios.
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