Omnitech Engineering shares decline 11% in market debut

New Delhi (PTI): Shares of Omnitech Engineering Ltd, a manufacturer of precision-engineered components, on Thursday listed with a discount of 11 per cent against the issue price of Rs 227.

The stock started trading at Rs 205, down 9.69 per cent from the issue price on the BSE.

At the NSE, it began trading at Rs 202, registering a decline of 11 per cent.

The company's market valuation stood at Rs 2,629.76 crore.

The initial public offer of Omnitech Engineering Ltd received 1.14 times subscription on the last day of bidding on Friday.

The Rs 583-crore IPO had a price band of Rs 216-227 per share.

The IPO was 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 Rs 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.