Omnitech Engineering IPO to Open on February 25; Price Band Fixed at ₹216–227

Investors can bid for a minimum of 66 equity shares and in multiples of 66 shares thereafter. At the upper price band of ₹227, one lot requires an application amount of ₹14,982.

The IPO is a combination of a fresh issue and an offer for sale. The total offer size is ₹583 crore, comprising a fresh issue of ₹418 crore and an offer for sale of ₹165 crore by promoter selling shareholder Udaykumar Arunkumar Parekh.

Omnitech Engineering IPO: Key Details

What Does Omnitech Engineering Do?

Omnitech Engineering is a Rajkot-based manufacturer of high precision engineered components and assemblies. The company supplies to global customers across industries such as energy, motion control and automation, industrial equipment systems, metal forming and other diversified industrial applications.

The company operates in precision engineering, where customers generally require components and assemblies that meet defined specifications, quality standards and delivery timelines. In this type of business, repeat orders usually depend on process capability, product consistency, customer approvals and timely execution.

The business is different from simple commodity manufacturing because customers often evaluate suppliers on tolerances, quality control, manufacturing reliability and ability to scale production. This makes order execution, customer relationships and operational discipline important parts of Omnitech Engineering’s business profile.

IPO Size and Offer Structure

Omnitech Engineering IPO has two parts: a fresh issue of ₹418 crore and an offer for sale of ₹165 crore. Together, the total offer size is ₹583 crore.

The fresh issue portion will be received by the company, while the offer for sale proceeds will go to the promoter selling shareholder, Udaykumar Arunkumar Parekh. This means only the fresh issue portion adds funds to the company, while the OFS portion increases public shareholding but does not bring fresh money into the business.

The price band has been fixed at ₹216 to ₹227 per share. At the upper price band, one retail lot of 66 shares requires ₹14,982.

Fresh Issue vs OFS: Why the Split Matters

A fresh issue and an offer for sale have different meanings in an IPO. In a fresh issue, the company issues new shares and receives money from the public offer. In an offer for sale, an existing shareholder sells shares and receives the proceeds.

Omnitech Engineering’s IPO includes both. The fresh issue portion is linked to the company’s business and funding requirements, while the OFS portion provides partial monetisation to the promoter selling shareholder.

This distinction matters because the fresh issue can support the company’s growth and balance sheet needs, while the OFS does not directly add funds to the company.

Objects of the Fresh Issue

The company proposes to use the net proceeds from the fresh issue for business-related purposes, including capital expenditure and funding requirements connected with its proposed facilities.

Omnitech Engineering is expanding capacity through proposed facilities in Rajkot, Gujarat. For a precision engineering manufacturer, such expansion generally involves investment in equipment, machinery, factory infrastructure, process capability and working capital support.

Project execution will be an important factor for the company after the IPO. Any delay in equipment procurement, installation, commissioning, vendor delivery or customer qualification can affect the expected benefit from the proposed facilities.

Employee Reservation and Discount

The IPO includes an employee reservation portion aggregating up to ₹10 crore. Eligible employees bidding in the employee reservation portion are being offered a discount of ₹11 per equity share.

The employee reservation portion is separate from the net offer available for QIB, non-institutional and retail categories. The employee discount applies only to eligible employees under the terms of the offer.

Category-Wise Offer Structure

The IPO is being made through the book-building process. Not more than 50% of the net offer is available for qualified institutional buyers, not less than 15% for non-institutional investors and not less than 35% for retail individual investors.

Order Book: A Key Business Data Point

Omnitech Engineering’s order book is one of the important data points in the offer documents. As of September 30, 2025, the company’s order book stood at ₹1,764.78 crore.

The order book is spread across end-use segments such as energy, motion control and automation, industrial equipment systems and others. The energy segment forms the largest part of the order book as of September 30, 2025.

A large order book can indicate revenue visibility, but it is not the same as confirmed revenue. Orders may be executed over time and can be affected by customer schedules, material availability, payment terms, cancellations, delivery delays or changes in scope.

Customer Concentration Is an Important Risk

The price band advertisement highlights customer concentration as a key risk. For the six months ended September 30, 2025, revenue from the top 10 customers represented 56.04% of revenue from sale of products and services.

For Fiscal 2025, the top 10 customers contributed 47.87% of revenue from sale of products and services. This means the company’s performance can be affected if large customers reduce orders, delay purchases, change suppliers or renegotiate commercial terms.

Geographic and Export Exposure

Omnitech Engineering has manufacturing operations concentrated in Rajkot, Gujarat. This gives the company a focused manufacturing base, but it also creates geographic concentration risk linked to local labour availability, logistics, utilities, approvals and regional disruptions.

The company also derives a significant portion of revenue from outside India. For the six months ended September 30, 2025, revenue from operations from outside India was ₹180.22 crore, representing 78.98% of revenue from operations.

Export exposure gives the company access to global customers and diversified industrial markets. At the same time, it brings foreign exchange risk, cross-border trade risk, customer sourcing risk and exposure to policy changes in overseas markets.

Valuation at the Price Band

At the upper price band of ₹227, the price-to-earnings ratio based on diluted EPS for Fiscal 2025 is 53.29 times. At the lower price band of ₹216, the P/E ratio is 50.70 times.

The price band advertisement compares this with the average industry peer group P/E ratio of 184.90 times for Fiscal 2025. It also states that the weighted average return on net worth for the last three financial years is 27.71%.

These valuation numbers need to be read along with business concentration, order book quality, export exposure, project execution risk and the company’s ability to convert orders into revenue and cash flows.

What Makes the IPO Notable?

Omnitech Engineering’s IPO stands out because it combines a precision engineering manufacturing business, export-linked revenue, a sizeable order book and expansion plans through proposed facilities.

The company operates in an industry where repeat business, quality approvals and execution capability matter. Customers in industrial and engineering sectors usually evaluate suppliers on precision, consistency, delivery reliability and ability to scale production.

At the same time, the offer documents show risks that are specific to manufacturing businesses. Customer concentration, order conversion, trade policy changes, exchange rate movements, project execution and liquidity requirements are important parts of the company’s risk profile.

Key Risks from the Offer Documents

The RHP and price band advertisement list several risks that are relevant to Omnitech Engineering’s business and IPO.

• Customer concentration: A significant part of revenue comes from top customers, which can affect financial performance if customer demand changes.
• Order book commitment risk: Orders may be cancelled, delayed, reduced, put on hold or not paid for by customers.
• Trade policy risk: Changes in trade rules, tariffs, incentives or reshoring policies in customer markets can affect exports and outsourcing demand.
• Geographic concentration: Manufacturing operations are concentrated in Rajkot, Gujarat.
• Project execution risk: Delays in equipment purchase, installation or commissioning of proposed facilities can affect expansion plans.
• Financing risk: Borrowings and repayment obligations can affect cash flows and financial flexibility.
• Exchange rate risk: Export revenue and imported material purchases expose the company to currency movement.
• Liquidity risk: The company has reported negative net cash flow from operating activities in certain periods.
• Quality standard risk: Precision engineering customers require high quality standards. Failure to meet required specifications may lead to order cancellation, claims or loss of future business.

Key Points to Know Before the IPO Opens

• Omnitech Engineering IPO is scheduled to open on February 25, 2026 and close on February 27, 2026.
• The price band is fixed at ₹216 to ₹227 per share.
• The lot size is 66 shares, and one lot costs ₹14,982 at the upper price band.
• The total offer size is ₹583 crore.
• The fresh issue size is ₹418 crore, while the offer for sale size is ₹165 crore.
• Eligible employees are offered a discount of ₹11 per share.
• The company manufactures high precision engineered components and assemblies for global customers.
• As of September 30, 2025, the order book stood at ₹1,764.78 crore.
• The energy segment contributed 74.07% of the order book as of September 30, 2025.
• Revenue from outside India formed 78.98% of revenue from operations for the six months ended September 30, 2025.
• Customer concentration, order execution, export exposure, exchange rates and project execution are key risk areas.

Source and Data Note

This article is based on Omnitech Engineering Limited’s Red Herring Prospectus dated February 18, 2026 and the price band advertisement published before the IPO opening. The article reflects information available around February 21, 2026, before the IPO opens for subscription.

Disclaimer

This article is for educational and informational purposes only. It is not investment advice, a recommendation to apply for the IPO, or a recommendation to buy, sell or hold any security. IPO investments are subject to market risk, valuation risk, allotment risk, liquidity risk and business risk. Investors should read the Red Herring Prospectus, price band advertisement and risk factors before making any investment decision.