Omnitech Engineering Set to Raise ₹850 Crore Through IPO for Expansion Drive

Omnitech Engineering Set to Raise ₹850 Crore Through IPO for Expansion Drive

Engineering firm eyes capital boost through IPO to fuel capacity expansion, reduce debt load, and meet surging global demand for precision solutions.

Firm moves ahead with ₹850 crore IPO roadmap.

Gujarat-based Omnitech Engineering has taken a significant step toward going public by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise approximately ₹850 crore through an initial public offering (IPO), as confirmed in its official statement dated June 24, 2025.

This strategic move is aimed at strengthening its financial foundation and scaling up operations to meet growing domestic and international demand. The offering will include both fresh equity shares and a stake sale by one of the promoters.

About Omnitech Engineering: A Precision-Driven Manufacturer

Omnitech Engineering operates as a technology-driven manufacturer, specializing in tailor-made mechanical systems, precision-engineered parts, and end-to-end industrial automation solutions. The firm caters to diverse sectors, including oil & gas, aerospace, automotive, and heavy industrial machinery.

With a strong global footprint, the company currently serves around 220 clients across 22 countries. Among its prominent customers are globally recognized names such as Halliburton Energy Services, Suzlon, Weatherford, Oilgear, Donaldson Company, PUSH Industries, Oshkosh Aerotech, and Bharat Aerospace Metals.

IPO Breakdown: Fresh Issue and Offer-for-Sale

According to the draft filing, the IPO will consist of two parts:

• New Equity Offering: Shares valued at ₹520 crore to be issued
• Offer-for-Sale (OFS): Existing shares valued at ₹330 crore, offloaded by promoter Udaykumar Arunkumar Parekh

Additionally, the company may explore a pre-IPO placement option of ₹104 crore. If this portion is successfully raised ahead of the IPO, the size of the fresh issue will be reduced accordingly.

Fund Utilization Strategy

Omnitech Engineering has laid out a clear plan for the proceeds from the IPO. The newly raised funds are intended to support the following purposes:

• Debt Reduction: A portion of the funds will go toward repaying existing borrowings to strengthen the balance sheet.
• New Manufacturing Units: Investments will be directed toward setting up two new state-of-the-art manufacturing facilities aimed at increasing capacity and product diversification.
• Capital Expenditure and Corporate Needs: Remaining funds will support general corporate purposes and other capital expenditures to drive operational efficiency.

Robust Financial Growth Backing the IPO

The company’s decision to go public is backed by its impressive financial performance in the recent fiscal year. As per data filed with SEBI:

• Net Profit: Soared 132% year-on-year to ₹43 crore in FY 2024–25, up from ₹19 crore in the previous year.
• Revenue: Witnessed a sharp 92% jump, reaching ₹349.71 crore compared to ₹181.95 crore in FY 2023–24.

This rapid growth signals a strong demand for its engineering solutions and validates its expansion ambitions.

Key Stakeholders and IPO Managers

The public issue is being managed by two prominent investment banks — Equirus Capital and ICICI Securities, who are serving as the book-running lead managers. Tasked with overseeing the offer’s registration, MUFG Intime India Pvt. Ltd.—earlier recognized as Link Intime India Pvt. Ltd.—has been officially designated for the role.
This team will be instrumental in facilitating a smooth public offering process and ensuring compliance with SEBI regulations.

Market Position and Strategic Outlook

With a rapidly expanding customer base and global clientele, Omnitech Engineering has positioned itself as a critical player in the precision manufacturing ecosystem. Its products and automation systems serve high-demand sectors that rely heavily on quality, precision, and reliability.

The planned IPO aligns with its broader strategy of leveraging capital markets to fuel innovation, scale operations, and strengthen international presence. The two new upcoming manufacturing units are expected to significantly boost production capacity and allow for a broader product range tailored to evolving industry needs.

Final Thoughts

Omnitech Engineering’s ₹850 crore IPO marks a pivotal chapter in its journey from a regional manufacturer to a global engineering solutions provider. With strong financials, an expanding global customer base, and clear capital deployment plans, the company is set to bolster its market footprint.

By focusing on debt reduction, production expansion, and strategic investments, Omnitech is charting a path toward long-term sustainable growth. As India’s industrial automation and manufacturing sectors gather momentum, the timing of this IPO positions the firm advantageously in a growing market landscape.

:

The image added is for representation purposes only