The Omnitech Engineering IPO is set to open for subscription on February 25, 2026, bringing a large precision engineering player to the primary market with a total issue size of ₹583.00 crore. The public offering combines a fresh issue of shares and an offer for sale, attracting attention from both institutional and retail investors.

The company operates in the precision engineering sector, manufacturing high-quality precision-engineered components and machine parts primarily for Original Equipment Manufacturers, commonly known as OEMs. With strong domestic operations and overseas exposure through its wholly owned subsidiary, Omnitech Engineering is positioning itself as a globally connected manufacturing company.

The IPO will close on February 27, 2026, with allotment expected to be finalised on March 2, 2026. The shares are scheduled for listing on the NSE on March 5, 2026.

Issue Structure and Size

The total IPO size stands at ₹583.00 crore. It comprises:

• Fresh Issue: 1.84 crore shares aggregating to ₹418.00 crore

• Offer for Sale: 0.73 crore shares

The fresh issue component will allow the company to raise new capital for business expansion, while the offer for sale enables existing shareholders to partially divest their holdings.

At the upper price band of ₹227 per share, the company’s estimated market capitalisation is ₹2,807.17 crore, placing it among the mid-sized industrial manufacturing listings in recent times.

Price Band and Lot Size

The IPO price band has been fixed at ₹216 to ₹227 per equity share. Investors can bid within this range during the subscription period.

The lot size is 66 shares, which is relatively small compared to many SME issues but standard for mainboard IPOs. Retail investors can apply for a minimum of 1 lot, which means 66 shares. At the upper price band of ₹227 per share, this translates to a minimum investment of ₹14,982.

For High-Net-Worth Individuals, the minimum application requirement is 14 lots, or 924 shares, amounting to ₹2,09,748 at the upper band.

The lower entry threshold for retail investors may encourage broader participation.

Grey Market Premium Status

As per current indications, the Grey Market Premium for Omnitech Engineering IPO stands at ₹0.

A zero GMP suggests neutral sentiment in the unofficial grey market ahead of listing. However, it is important to note that grey market trading is unregulated and does not reflect official price discovery. GMP is influenced purely by demand and supply dynamics in informal markets and should not be considered a guaranteed indicator of listing performance.

Business Overview

Omnitech Engineering Limited is engaged in manufacturing precision components used in various industrial applications. The company supplies machine parts and engineered products primarily to OEMs, which integrate these components into larger machinery and equipment systems.

The precision engineering industry demands high levels of technical expertise, quality control and manufacturing accuracy. Even minor deviations can impact the performance of the final product. Therefore, companies operating in this space must maintain strict standards of production, certification and compliance.

Omnitech earns revenue from:

• Sale of finished precision components

• Engineering and related services

The company’s customer base largely includes OEM clients who rely on long-term supply agreements and consistent quality.

International Operations

A key highlight of Omnitech Engineering’s operations is its wholly owned subsidiary, Omnitech Group, Inc., which contributes to overseas revenue.

In FY25, revenue from the foreign subsidiary stood at ₹365.69 million, reflecting the company’s expanding international footprint. Overseas exposure provides revenue diversification and reduces dependency on domestic industrial cycles.

Global operations also indicate compliance with international manufacturing standards, which can enhance brand credibility and competitiveness.

Industry Outlook

The precision engineering sector in India has grown significantly over the past decade, supported by:

• Expansion of the manufacturing sector

• Government initiatives promoting Make in India

• Increased export opportunities

• Rising demand from automotive, aerospace, defence and heavy machinery sectors

OEMs increasingly prefer reliable, long-term suppliers capable of delivering consistent quality at competitive pricing. As manufacturing becomes more technology-driven, precision component manufacturers stand to benefit from increased complexity and higher value addition.

India’s push toward self-reliance in manufacturing has further strengthened demand for domestically produced industrial components.

Use of Fresh Issue Proceeds

The company is expected to utilise the proceeds from the fresh issue for:

• Capacity expansion

• Investment in advanced machinery and automation

• Strengthening working capital

• General corporate purposes

Capacity expansion is particularly important in precision engineering, as higher volumes often lead to improved economies of scale and better margins.

Automation and technology upgrades can improve production efficiency and reduce defect rates, directly impacting profitability.

Financial Perspective

At a post-issue market capitalisation of ₹2,807.17 crore at the upper band, valuation becomes a key factor for investors.

In industrial manufacturing companies, investors typically assess:

• Revenue growth trends

• EBITDA margins

• Order book strength

• Client concentration risk

• Capital expenditure requirements

• Debt levels

Consistent revenue from OEM clients suggests stability, but dependence on a limited number of customers can also pose concentration risk.

Investors will closely study financial disclosures to evaluate growth sustainability and margin expansion potential.

Competitive Landscape

The precision engineering industry includes several organised and unorganised players. Competition is based on:

• Pricing

• Technical capability

• Delivery timelines

• Quality certifications

• Long-term client relationships

Established OEM partnerships often create entry barriers for new competitors. However, pricing pressure remains a constant challenge in industrial manufacturing.

Companies that invest in technology and automation generally gain a competitive advantage by improving productivity and maintaining tighter quality control.

Risks to Consider

Like all IPOs, Omnitech Engineering carries certain risks:

• Cyclical nature of industrial demand

• Dependence on OEM clients

• Raw material price volatility

• Foreign exchange fluctuations affecting overseas revenue

• High capital expenditure requirements

Industrial companies are sensitive to economic slowdowns. A decline in capital spending by OEM clients can directly impact order volumes.

Additionally, global exposure brings currency risks, although it also offers diversification benefits.

Investor Sentiment

The IPO market in early 2026 has shown selective enthusiasm, with investors focusing heavily on valuation comfort and financial strength.

The zero Grey Market Premium indicates cautious sentiment rather than strong speculative interest. Institutional participation during the subscription window will be a key indicator of market confidence.

The relatively affordable retail entry amount of ₹14,982 may encourage broader participation compared to higher-ticket SME issues.

Listing Expectations

With listing scheduled on March 5, 2026, investors will closely monitor:

• Subscription numbers across retail, QIB and HNI categories

• Anchor investor participation

• Overall market conditions

Listing gains, if any, will depend on demand generated during the subscription period rather than grey market trends.

Long-term investors may focus more on business fundamentals, global revenue growth and manufacturing capability rather than short-term price movements.

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