Omnitech Engineering, a manufacturer of precision-engineered components, on Monday said it has filed preliminary papers with capital markets regulator SEBI to raise Rs 850 crore through an initial public offering.
The IPO is a combination of fresh issuance of equity shares worth up to Rs 520 crore and an offer for sale component of equity shares valued at Rs 330 crore by promoter Udaykumar Arunkumar Parekh, as per the draft red herring prospectus.
The company plans a pre-IPO placement of shares aggregating to Rs 104 crore. If the pre-IPO placement is completed, the fresh issue size will be reduced.
Proceeds from the fresh issue will be utilised to repay debt, set up two new manufacturing facilities, fund capital expenditure requirements and general corporate purposes.
Omnitech Engineering manufactures high precision engineered components and supplies to global customers across industries like energy, motion control & automation, industrial equipment systems, 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.
Rajkot-based Omnitech Engineering will compete with the likes of Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies and MTAR Technologies.
It supplied customised high-precision components to over 220 customers across 22 countries, including the US, UAE, Germany, Bulgaria, and Sweden.
The shares are proposed to be listed on the BSE and NSE.
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.
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