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India’s year-end IPO blitz: risks, rewards and what to watchIndia’s year-end IPO blitz: risks, rewards and what to watch

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Sansera Engineering Expands Global Reach and Secures ₹160 Cr Airbus Deal

Sansera Engineering Expands Global Reach and Secures ₹160 Cr Airbus Deal

Bengaluru, June 4, 2025 — Sansera Engineering Ltd., a Bengaluru-based firm known for precision manufacturing, has signed a pivotal ₹160 crore contract with Airbus. The agreement involves delivering structural door assemblies for the Airbus A220, marking a notable step forward in India’s aerospace component capabilities.
This agreement was carried out in collaboration with Airbus’s seasoned supplier, Dynamatic Technologies. The two Indian companies will work together to supply vital door components for the A220’s worldwide manufacturing.
These components are essential to aircraft safety and structural performance — areas requiring top-tier engineering and stringent quality control.
The stock market responded positively to the announcement. Sansera’s share price rose over 1% following the news, reflecting investor confidence in its ability to compete in high-value, global supply chains outside its traditional automotive segment.

Strategic Shift Beyond Automotive
Sansera has historically focused on producing automotive components but is now deepening its footprint in sectors like aerospace, industrial machinery, and electric vehicles (xEV). The Airbus agreement is part of its broader pivot toward high-growth, non-automotive verticals — a move aimed at diversifying revenue and reducing reliance on cyclical auto markets.
The company is also ramping up capital investment. For FY24, it has set aside ₹300 crore to increase capacity and modernize infrastructure. A sizable share of this budget is being funneled into enhancing aerospace capabilities — including machining, quality assurance, and assembly facilities compliant with global aerospace standards.

The Airbus A220: A Growing Global Workhorse
Airbus’s A220 aircraft is increasingly preferred by airlines due to its fuel efficiency, lightweight structure, and modern passenger experience. It is particularly popular on regional and mid-haul routes in North America and Europe. With rising orders, Airbus has been scaling up its production, creating opportunities for global suppliers like Sansera.
The new contract involves Sansera producing critical door sub-assemblies — precision-engineered components that are vital to the safety and operational reliability of the aircraft. The project will require meticulous adherence to international standards in machining, material integrity, and logistics, reinforcing Sansera’s position as a dependable aerospace vendor.

Leadership Speaks
Mr. S. Sekhar Vasan, Chairman and Managing Director of Sansera, commented on the agreement, saying the business is honored to be a part of such a well-known aircraft. He emphasized the role of the aerospace division in Sansera’s growth strategy, stating that the firm is fully committed to quality, innovation, and punctual deliveries in line with Airbus’s exacting expectations.

Partnering With Industry Veterans
Sansera’s collaboration with Dynamatic Technologies amplifies its credibility in this high-stakes domain. Dynamatic has supplied several key components to Airbus over the years and brings deep experience with aviation-grade compliance, certifications (such as AS9100), and logistics management.
By using Dynamatic’s aerospace experience, Sansera gains a competitive edge and expedites its integration into the global aerospace supply chain—a significant benefit for new or expanding suppliers.

Driving Employment and “Make in India”
The contract isn’t just good news for Sansera — it’s a win for India’s aerospace ecosystem. It highlights the increasing role Indian firms are playing in global aviation, thanks in part to the “Make in India” initiative that promotes domestic manufacturing for international consumption.
To support these ambitions, Sansera has signed a memorandum of understanding (MoU) with the Karnataka government to invest ₹2,100 crore in a new facility in Harohalli, Ramanagara. This expansion aims to generate over 3,500 jobs and boost India’s capacity for exporting precision-engineered aerospace components.

Market and Investor Outlook
Analysts are optimistic about Sansera’s evolving business model. As the automotive sector faces cyclical uncertainties, entering the aerospace domain offers stability, scale, and better margins. The Airbus partnership, especially involving a globally trusted aircraft like the A220, adds tremendous weight to Sansera’s credentials in the international market.
The immediate stock surge of over 1% may just be the beginning. Long-term investors see this contract as a turning point that will expand Sansera’s order book and increase revenue visibility across a more balanced set of industries.

Conclusion
The ₹160 crore agreement between Sansera Engineering and Airbus is much more than just a business arrangement. It’s a testament to India’s emergence as a serious player in aerospace manufacturing. With a clear vision, technical depth, and strategic partnerships, Sansera is transitioning from a domestic auto parts supplier to a global engineering force.
Sansera is now firmly in the cockpit as Airbus prepares for further A220 deliveries, assisting India in becoming a favored center for high-precision aviation components.

 

 

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