Omnitech Engineering IPO to Hit Dalal Street on February 25 After Reducing Offer Size by Over 30%
Rajkot-based precision component manufacturer Omnitech Engineering is set to launch its much-anticipated maiden public issue on February 25, 2026. The company filed its Red Herring Prospectus (RHP) with the Registrar of Companies on February 18, confirming that the IPO will open for subscription next week.
The Omnitech Engineering IPO is a book-built issue aggregating ₹583 crore, significantly reduced from the earlier planned ₹850 crore disclosed in its preliminary papers filed in June 2025. The reduction of over 30 percent in total issue size indicates a calibrated fundraising strategy amid evolving market conditions.
The current issue comprises:
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Fresh issue of equity shares worth ₹418 crore
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Offer for sale (OFS) of ₹165 crore by promoter Udaykumar Arunkumar Parekh
The Securities and Exchange Board of India (SEBI) approved the IPO papers in September 2025.
Omnitech Engineering IPO Dates and Subscription Details Investors Must Note
The IPO will follow a standard three-day subscription window:
| Event | Date |
|---|---|
| Anchor Book Opens | February 24, 2026 |
| IPO Opens | February 25, 2026 |
| IPO Closes | February 27, 2026 |
| Allotment Finalisation | March 2, 2026 |
| Refund Initiation | March 4, 2026 |
| Shares Credited | March 4, 2026 |
| Tentative Listing | March 5, 2026 |
The shares will be listed on both BSE and NSE.
In terms of allocation:
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50% reserved for Qualified Institutional Buyers (QIBs)
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15% for Non-Institutional Investors (NIIs)
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35% for Retail Investors
This structure indicates strong institutional participation focus while keeping substantial allocation for retail investors.
How Omnitech Plans to Use the IPO Proceeds
Omnitech Engineering intends to deploy the fresh issue proceeds strategically for expansion and balance sheet strengthening.
The proposed utilisation includes:
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₹233.5 crore for setting up two new manufacturing facilities in Rajkot
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₹50 crore for partial repayment of debt
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₹18.6 crore for rooftop solar panel installation
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Remaining funds for general corporate purposes
As of September 2025, the company’s total outstanding indebtedness stood at ₹382.9 crore. The debt reduction component is likely to improve leverage metrics and strengthen financial stability post-listing.
Business Profile: A Fast-Growing Precision Engineering Player
Omnitech Engineering positions itself as one of India’s fastest-growing manufacturers of high-precision engineered components and assemblies among peers.
Currently, the company operates three manufacturing facilities serving industries such as:
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Energy (42% revenue contribution in FY25)
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Motion control and automation (36%)
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Industrial equipment systems (20%)
It competes with established listed peers including Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, MTAR Technologies, and Dynamatic Technologies.
Financial Performance: Strong FY25 Growth But Earlier Volatility
The company’s financial performance shows a sharp turnaround in FY25.
FY25 Highlights:
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Revenue surged 92.5% to ₹342.9 crore (from ₹178.2 crore in FY24)
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Net profit jumped 132% to ₹43.9 crore (from ₹18.9 crore in FY24)
However, FY24 performance had shown weakness:
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Profit declined 41.4%
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Revenue grew marginally by just 0.5%
For the six-month period ended September 2025:
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Revenue stood at ₹228.1 crore
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Net profit reached ₹27.7 crore
This performance reflects improving operational momentum, although past inconsistency may remain a key point of evaluation for investors.
Order Book Strength Signals Revenue Visibility
One of the strongest positives in the IPO narrative is Omnitech’s expanding order book.
As of September 2025, the order book stood at ₹1,764.7 crore, compared to ₹283.6 crore in March 2025. This significant jump enhances revenue visibility and provides confidence regarding near-term growth sustainability.
A robust order pipeline is particularly important for capital goods and engineering companies, where project execution timelines directly impact financial performance.
Merchant Bankers and Listing Outlook
Equirus Capital and ICICI Securities are acting as merchant bankers to the issue. Their involvement adds credibility to the fundraising process and institutional outreach.
With listing expected on March 5, market sentiment closer to the listing date will play a crucial role in determining post-listing performance.
What Should Investors Consider Before Subscribing?
Investors evaluating the Omnitech Engineering IPO may consider the following factors:
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Strong FY25 growth rebound
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Substantial order book expansion
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Capital expenditure-led expansion strategy
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Debt repayment improving balance sheet
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Past earnings volatility
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Competitive industry landscape
Given the reduced issue size and improved financial performance, investor interest may remain healthy, especially if broader market conditions stay supportive.
However, valuation details and pricing will ultimately determine subscription enthusiasm.
The Omnitech Engineering IPO is shaping up as a mid-sized manufacturing public issue with growth ambitions and expanding order visibility — making it a closely watched upcoming IPO in 2026.
