Omnitech Engineering share price makes weak debut, lists at 11% discount to the IPO price

Omnitech Engineering share price made a lacklustre debut in the Indian stock market on Thursday, March 5, by listing at a 11% discount to the initial public offering (IPO) price of ₹227 per share.

Omnitech Engineering share price opened at ₹202 on NSE and ₹205 on BSE. This means that the IPO allottees made a loss of 11% on Omnitech Engineering IPO listing.

The listing of the Omnitech Engineering IPO fell short of market expectations, as the grey market premium (GMP) had pointed to a flat debut. Ahead of the listing, the GMP of the Omnitech Engineering IPO stood at ₹0, suggesting that the estimated listing price would likely be in line with the issue price.

Omnitech Engineering IPO details

The ₹583-crore IPO of Omnitech Engineering, a manufacturer of precision-engineered components, was subscribed 1.14 times on the final day of bidding on Friday.

According to NSE data, the issue received bids for 2,16,31,632 shares against the 1,89,09,890 shares on offer. The Qualified Institutional Buyers (QIB) portion was subscribed 2.86 times, while the non-institutional investors’ category saw a subscription of 73%. The Retail Individual Investors (RIIs) segment was subscribed 33%.

The IPO comprises a fresh issue of equity shares worth up to ₹418 crore and an Offer for Sale (OFS) of shares valued at ₹165 crore by promoter Uday Kumar Arunkumar Parekh.

The mainboard IPO was open for subscription from February 25 and ended on February 27.

Proceeds from the fresh issue will be utilised for debt repayment, setting up two new manufacturing facilities, meeting capital expenditure requirements, and for general corporate purposes.

The allotment of Omnitech Engineering IPO was finalised on Monday, March 2. The shares were credited in the demat accounts of the IPO allottees on Wednesday, March 4.

Equirus Capital is the book running lead manager and MUFG Intime India is the registrar of the issue.

Omnitech Engineering produces high-precision engineered components and caters to global clients across sectors such as energy, motion control and automation, industrial equipment systems, and other diversified industrial applications. Its customer base includes Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.