Omnitech Engineering mobilises over Rs 174 cr from anchor investors; IPO to open on Feb 25

New Delhi, Feb 24 (PTI) Omnitech Engineering, a manufacturer of precision-engineered components, on Tuesday raised over Rs 174 crore from anchor investors, a day before the opening of its initial share-sale for public subscription.

The anchor book saw participation from several domestic and global investors, including ICICI Prudential Mutual Fund (MF), Nippon India MF, WhiteOak Capital MF, Ashoka India Equity Investment Trust Plc, Malabar India Fund, Edelweiss MF and Allianz Global Investors, according to a circular uploaded on BSE's website.

Of the total anchor allocation, 54.42 per cent, amounting to 41,84,928 shares worth nearly Rs 95 crore, was allocated to five domestic mutual funds across eight schemes.

As per the circular, Omnitech Engineering has finalised the allocation of 76,91,629 equity shares to anchor investors at Rs 227 per share, aggregating to approximately Rs 174.6 crore.

The company's Rs 583-crore initial share-sale will open for public consumption on February 25 and conclude on February 27.

The price band has been fixed at Rs 216 - 227 per share, valuing the company at over Rs 2,800 crore.

The IPO is a combination of fresh issuance of equity shares worth up to Rs 418 crore and an Offer For Sale component of equity shares valued at 165 crore by promoter Udaykumar Arunkumar Parekh.

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.

The company said that half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Omnitech Engineering will make its stock market debut on March 5. The IPO is being managed by Equirus Capital and ICICI Securities. PTI SP MR