Upcoming IPO: Omnitech Engineering, on Tuesday, received markets regulator Securities and Exchange Board of India (SEBI) approval to launch IPO worth ₹850 crore.
The IPO comprises a fresh issue of equity shares worth up to ₹520 crore and an offer for sale of shares valued at ₹330 crore by promoter Udaykumar Arunkumar Parekh, according to the draft red herring prospectus (DRHP).
The company also plans to raise ₹104 crore through a pre-IPO placement. If this placement goes through, the size of the fresh issue will be adjusted accordingly.
The funds will be allocated towards debt repayment of ₹140 crore and the establishment of two new manufacturing units costing ₹213.7 crore. Additionally, ₹15.7 crore will be used to install rooftop solar panels and to purchase new equipment and machinery for the existing manufacturing facility. The remaining amount will be reserved for general corporate purposes.
The shares of the company is proposed to be listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Equirus Capital and ICICI Securities are the book-running lead managers, while MUFG Intime India, formerly Link Intime India, is the registrar to the IPO.
About the company
Omnitech Engineering is one of the key manufacturers of high-precision engineered components and assemblies, supplying to global customers across various industries, including energy, motion control & automation, industrial equipment systems, metal forming, and other diversified industrial applications.
Its clientele includes Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries and Bharat Aerospace Metals.
Its customer base comprises Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.
It supplied customised high-precision components to over 220 customers across 22 countries, including the US, UAE, Germany, Bulgaria, and Sweden.
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