Omnitech Engineering is a manufacturer of high-precision engineered components and assemblies based in Gujarat, which will be offered publicly (through initial public offering, IPO) on Wednesday, February 25, 2026. The company has completed its Red Herring Prospectus (RHP) to raise the public issue amounting to ₹583 crore.
The offer subscription will be open for three days, until Friday, February 27. The move is a major step towards the engineering company since it aims to convert into a publicly traded enterprise on the stock markets across India.
Fund utilization and operational enhancement
A combination of fresh issue of equity shares with an offer of sale (OFS) is made up of the total issue size of ₹583 crore. The company will issue new equity shares of ₹418 crore, and the promoter selling shareholder, Udaykumar Arunkumar Parekh, will sell ₹165 crore shares through the OFS component. Anchor investor bidding will occur a day before the actual public subscription on February 24. It is proposed that the equity shares, with a face value of ₹5, be listed on the BSE, as well as the National Stock Exchange (NSE).
The funds raised through the fresh issue of ₹418 crore have been set aside to fund a number of strategic projects that will enable the company to enhance its operational capabilities and financial strength. The major part of the capital will be used in setting up two new plants in the city of Rajkot, Gujarat, approximately ₹233.5 crore. The firm plans to inject ₹50 crore of funds into repaying or pre-paying some of its outstanding borrowings to minimize its overall indebtedness, as it was reported that the firm had approximately ₹382.9 crore outstanding.
Additional investments in the improvement of existing operations and sustainability are intended. Omnitech Engineering has allocated ₹18.6 crore to the purchase and installation of rooftop solar panels in its premises as an indicator of its energy efficiency. The other cash will be utilized in the purchase of new equipment in its existing manufacturing facilities and for general corporate purposes. The company also anticipates that its brand visibility will increase and establish a public marketplace for its shares in India by listing on the bourses.
IPO structure and financial performance
Omnitech Engineering has positioned itself as one of the major manufacturing firms dealing with precision-engineered components to a spectrum of worldwide clients in the field of energy, oil and gas, motion control and industrial automation. The growth trend of the company has been impressive, with its operations revenue soaring 92% annually to ₹343 crore in fiscal 2025 against ₹178 crore in fiscal 2024. Its profit after tax also increased substantially during the same period of time by ₹43.8 crore to ₹18.9 crore profit after tax, as compared to the previous year.
The company has a high level of presence internationally, with almost 75% of its operational revenue being generated through its exports to other countries such as the US, UAE, and Germany. Omnitech had an order book of ₹1,764.78 crore as of September 2025, giving the sales considerable revenue visibility over the following years. This book reflects its products and services’ sales revenue of more than 500%for its financial year 2024-25.
The IPO is being carried out under a book-building process, where a certain quota is being allocated to various categories of investors. Qualified Institutional Buyers (QIBs) take a minimum of 50% of the net offer, with at least 35% going to retail individual investors and 15% to non-institutional investors. The small reservation of eligible employees has also been incorporated in the company. In the implementation of the issue, the book-running lead managers of the issue are ICICI Securities and Equirus Capital, and the registrar of the issue is MUFG Intime India Pvt Ltd.
The basis of allotment is anticipated to be determined by March 2, following the end of the subscription on February 27. The unsuccessful bidders and the credit of shares in allotment to the demat accounts of allottees will be made by March 4. In case of timeline progress, the shares of Omnitech Engineering will be offered to the stock markets on Thursday, the 5th of March, 2026.
Conclusion
The upcoming ₹583 crore IPO of Omnitech Engineering is a calculated expansion phase of the Rajkot-based firm. The firm is also developing an extensive global order book, which it intends to exploit by incorporating debt minimization, new manufacturing centres and green energy programs. The engineering firm intends to capitalize on its strong financial performance and niche in high-precision components to draw investors to an active primary market as it prepares to launch on February 25.
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