Omnitech Engineering Ltd. shares listed sharply lower than its IPO price on Thursday. The stock opened at Rs 202 on the NSE and Rs 205 on the BSE, compared to the issue price of Rs 227. The average discount was 10%. The initial public offering, which closed for subscription on Feb. 27, was booked 1.2 times on its final day.
The Gujarat-based high-precision engineered components manufacturing company raised Rs 583 crore from the primary market. The IPO had fresh issue of 1.84 crore shares, amounting to Rs 418 crore, and an offer-for-sale (OFS) of 73 lakh shares, worth Rs 165 crore.
The company will use proceeds from the IPO to clear debt (Rs 50 crore), set up new projects (Rs 232 crore), fund capex (Rs 19 crore) and for 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.
It supplied customised high-precision components to over 220 customers across 22 countries, including the US, UAE, Germany, Bulgaria, and Sweden.
Rajkot-based Omnitech Engineering will compete with the likes of Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies and MTAR Technologies.
ALSO READ: Walmart-Backed PhonePe Targets Up To $10.5 Billion Valuation In India IPO
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
