A precision engineering company with a Rs 1,764 crore order book and 19 years of global manufacturing experience taps the market — but at what price?
Omnitech Engineering Ltd. (OEL) has opened its maiden IPO for public subscription on February 25, 2026, and the issue closes on February 27, 2026. The company is raising Rs 583 crore through a combination of a fresh issue of Rs 418 crore and an offer for sale of Rs 165 crore, via the book building route. Shares will be listed on both BSE and NSE, with the tentative listing date set for March 5, 2026. Allotment is expected to be finalised by March 2, 2026.
About the Business
Omnitech Engineering Ltd. is a manufacturer of high precision engineered components and assemblies, catering to global customers across industries including energy, motion control and automation, industrial equipment systems, and metal forming. The company has been in this business for 19 years and manufactures components ranging in weight from 0.003 kg to 503.33 kg, in diameters from 1.27 cm to 1 metre, and lengths from 0.2 cm to 10 metres. This wide range allows it to serve highly diverse and demanding customer requirements, particularly in safety-critical applications.
The company supplied customised high precision components to over 256 customers across 24 countries during the six months ended September 30, 2025, including the United States, India, UAE, Germany, Bulgaria, Sweden, United Kingdom, France, Australia and Canada. Approximately 75% of revenues come from international markets, with the remaining 25% from domestic sales. Repeat orders account for over 85% of business on average — a strong indicator of customer stickiness.
As of September 30, 2025, Omnitech Engineering had an order book of Rs 1,764.78 crore which is 551% of its FY25 revenue. This is arguably the single most compelling data point in the entire IPO story, offering substantial near-term revenue visibility. The company had 1,807 employees on its payroll as of the same date.
IPO Details at a Glance
| Parameter | Details |
|---|---|
| Issue Type | Fresh Issue + OFS (Book Building) |
| Total Issue Size | Rs 583 crore |
| Fresh Issue | Rs 418 crore (~1.84 crore shares) |
| Offer for Sale (OFS) | Rs 165 crore (~72.69 lakh shares) |
| Face Value | Rs 5 per share |
| Price Band | Rs 216 – Rs 227 per share |
| Lot Size | 66 shares and in multiples thereof |
| Minimum Investment (Retail) | Rs 14,982 (at upper cap) |
| Issue Opens | February 25, 2026 |
| Issue Closes | February 27, 2026 |
| Allotment Date | March 2, 2026 |
| Listing Date (Tentative) | March 5, 2026 |
| Listing | BSE & NSE |
| Issue as % of Post-IPO Capital | 20.77% |
| Post-IPO Market Cap | Rs 2,807.17 crore |
| Pre-IPO Paid-up Capital | Rs 52.63 crore |
| Post-IPO Paid-up Capital | Rs 61.83 crore |
| Employee Reservation | ~44,053 shares at Rs 11 discount |
| GMP (as of Feb 24, 2026) | Rs 7 (~3.1% over issue price) |
Where Is the Money Going?
| Purpose | Amount (Rs Crore) |
|---|---|
| Repayment / prepayment of borrowings | 50.00 |
| Capex — New Facility 1 | 132.84 |
| Capex — New Facility 2 | 100.71 |
| Solar plant + new equipment for Facility 2 | 18.70 |
| General Corporate Purposes | Balance |
| Total (Fresh Issue) | ~418 crore |
The OFS component of Rs 165 crore goes entirely to the selling shareholders and does not add to the company’s coffers. The bulk of fresh proceeds — over 70% — is directed toward building out two new manufacturing facilities, which underlines this as a capacity expansion play.
Capital History
Initial equity shares were issued at par. The company subsequently issued further equity shares in the price range of Rs 122 to Rs 210 per share between March 2024 and January 2025. A generous bonus issue in the ratio of 9:1 was executed in March 2024. The average cost of acquisition for promoters and selling stakeholders is effectively nil to Rs 0.05 per share — against an IPO price of Rs 227 at the upper cap.
Financial Performance
| Period | Total Income (Rs Crore) | Net Profit (Rs Crore) | PAT Margin (%) | RoCE (%) |
|---|---|---|---|---|
| FY23 | 183.71 | 32.29 | 17.58% | 35.85% |
| FY24 | 181.95 | 18.91 | 10.39% | 14.75% |
| FY25 | 349.71 | 43.87 | 12.54% | 16.08% |
| H1 FY26 (Apr–Sep 2025) | 236.69 | 27.78 | 11.74% | 9.19% |
The FY24 dip is the elephant in the room. Revenue barely moved year-on-year, but net profit fell by more than 40%. The company attributes this entirely to the cost and disruption of setting up a new, modern manufacturing plant — heavy borrowings were drawn down to fund the facility, which weighed heavily on the bottom line. With the new plant now operational and running as scheduled, FY25 saw revenues nearly double and profits recover meaningfully. The order book of Rs 1,764 crore suggests the FY25 growth trajectory is not a one-off.
That said, borrowings of Rs 382.91 crore as of September 30, 2025 remain a concern. Rs 50 crore of IPO proceeds are earmarked for partial debt repayment, which should bring the debt-to-equity ratio down from approximately 1.6x to around 0.5x post-listing. The average RoNW over three years stands at 27.71%, and the three-year average EPS is Rs 3.30.
Valuation and Peer Comparison
| Company | P/E (as of Feb 20, 2026) |
|---|---|
| Azad Engineering | 90.3x |
| Unimech Aerospace | 69.5x |
| PTC Industries | 401.0x |
| MTAR Technologies | 166.0x |
| Dynamatic Technologies | 144.0x |
| Omnitech Engineering (FY25) | 63.94x |
| Omnitech Engineering (annualised FY26) | 50.56x |
| Valuation Metric | Value |
|---|---|
| P/E (based on FY25 earnings) | 63.94x |
| P/E (based on annualised FY26 earnings) | 50.56x |
| P/BV (pre-IPO NAV of Rs 22.07 as of Sep 30, 2025) | 10.29x |
| P/BV (post-IPO NAV of Rs 16.53 per share) | 13.73x |
| Average EPS (3-year) | Rs 3.30 |
| Average RoNW (3-year) | 27.71% |
On the face of it, the peers listed in the offer document — Azad Engineering, Unimech Aerospace, PTC Industries, MTAR Technologies, and Dynamatic Technologies — trade at significantly higher multiples. At a P/E of 50.56x on annualised FY26 earnings, OEL looks relatively cheaper than most of its stated peers. However, these are different businesses with different revenue profiles, end-market exposures, and operational scales.
Merchant Banker Track Record
The joint Book Running Lead Managers are Equirus Capital Pvt. Ltd. and ICICI Securities Ltd. Together, these two BRLMs have handled 85 issues over the last three fiscals. The registrar is MUFG Intime India Pvt. Ltd. and Equirus Securities Pvt. Ltd. is the syndicate member.
Dividend Policy
The company has not declared any dividend during the periods covered. A dividend policy was adopted in May 2025, with actual payouts to be decided based on future financial performance and business requirements.
Key Risks
- Sharp bottom-line degrowth in FY24, even if explained by plant setup costs
- Borrowings of Rs 382.91 crore as of September 30, 2025 — debt remains elevated pre-listing
- Only Rs 50 crore of the Rs 418 crore fresh issue proceeds allocated toward debt repayment
- Heavy dependence on export markets (~75% revenues) — vulnerable to currency and geopolitical risks
- OFS component of Rs 165 crore means promoters and early investors are cashing out at IPO
- RoCE declined from 35.85% in FY23 to 9.19% in H1 FY26, though this may reverse as new capacity ramps up
Grey Market Premium (GMP)
That said the GMP for Omnitech Engineering IPO stands at about Rs 7, suggesting an estimated listing price of around Rs 234. The GMP touched a high of Rs 16, as per reports, before the issue opened and has since softened.
